FINEOS Corporation Holdings plc (ASX:FCL) surges 12%; private companies who own 53% shares profited along with institutions

Key Insights

• Significant control over FINEOS Corporation Holdings by private companies implies that the general public has more power to influence management and governance-related decisions

• 53% of the company is held by a single shareholder (Jacquel Investments Limited)

• Insiders have been buying lately

If you want to know who really controls FINEOS Corporation Holdings plc (ASX:FCL), then you'll have to look at the makeup of its share registry. With 53% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies gained the most after market cap touched AU$631m last week, while institutions who own 32% also benefitted.

In the chart below, we zoom in on the different ownership groups of FINEOS Corporation Holdings.

See our latest analysis for FINEOS Corporation Holdings

What Does The Institutional Ownership Tell Us About FINEOS Corporation Holdings?

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.

We can see that FINEOS Corporation Holdings does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see FINEOS Corporation Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

FINEOS Corporation Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Jacquel Investments Limited with 53% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Selector Funds Management Limited is the second largest shareholder owning 8.1% of common stock, and ECP Asset Management Pty Ltd holds about 7.0% of the company stock.

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 FINEOS Corporation Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We can see that insiders own shares in FINEOS Corporation Holdings plc. In their own names, insiders own AU$7.0m worth of stock in the AU$631m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over FINEOS Corporation Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 53%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand FINEOS Corporation Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with FINEOS Corporation Holdings .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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