What kind of investors own most Comvita Limited (NZSE:CVT)?

If you want to know who actually controls Comvita Limited (NZSE:CVT), then you’ll need to look at the composition of its share register. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet”.

Comvita is a small company with a market capitalization of NZ$257 million, so it may still fly under the radar of many institutional investors. In the graph below, we can see that the institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about Comvita.

See our latest analysis for Comvita

distribution of property

What does institutional ownership tell us about Comvita?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We see that Comvita has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Comvita’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

earnings-and-revenue-growth

Hedge funds do not have many shares in Comvita. Looking at our data, we can see that the major shareholder is Wang Li with 12% of the outstanding shares. With respectively 6.5% and 6.4% of the outstanding shares, China Resources Company Limited and Milford Asset Management Limited are the second and third shareholders. Additionally, CEO David Banfield owns 0.8% of the company’s shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely distributed and there is no dominant shareholder.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There is some analyst coverage of the stock, but it could still become better known over time.

Comvita Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

It appears that insiders own a large share of Comvita Limited. Insiders hold a NZ$65 million stake in this NZ$257 million venture. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.

General public property

The general public, made up mostly of individual investors, collectively owns 51% of Comvita shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that private companies own 14% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Comvita, we need to consider many other factors.

I always like to check a revenue growth history. You can also, by accessing this free revenue and profit history chart in this detailed graph.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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