Key Insights

The considerable ownership by retail investors in HUB24 indicates that they collectively have a greater say in management and business strategy The top 25 shareholders own 47% of the company 37% of HUB24 is held by Institutions

A look at the shareholders of HUB24 Limited (ASX:HUB) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that reaped the most benefits after last week’s 5.7% price gain, institutions also received a 37% cut.

Let's delve deeper into each type of owner of HUB24, beginning with the chart below.

Check out our latest analysis for HUB24  ownership-breakdown

What Does The Institutional Ownership Tell Us About HUB24?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

HUB24 already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of HUB24, (below). Of course, keep in mind that there are other factors to consider, too. earnings-and-revenue-growth

We note that hedge funds don't have a meaningful investment in HUB24. Bennelong Australian Equity Partners Pty Ltd is currently the largest shareholder, with 7.8% of shares outstanding. Hyperion Asset Management Limited is the second largest shareholder owning 7.0% of common stock, and Thorney Investment Group Australia Pty. Ltd. holds about 6.0% of the company stock. Additionally, the company's CEO Andrew Alcock directly holds 1.4% of the total shares outstanding.



Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of HUB24

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in HUB24 Limited. This is a big company, so it is good to see this level of alignment. Insiders own AU$141m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can  click here to see if insiders have been buying or selling.

General Public Ownership

With a 50% ownership, the general public, mostly comprising of individual investors, have some degree of sway over HUB24. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 6.0%, private equity firms could influence the HUB24 board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand HUB24 better, we need to consider many other factors. Case in point: We've spotted  1 warning sign for HUB24 you should be aware of.

But ultimately  it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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