If you want to know who really controls Family Zone Cyber Safety Limited (ASX:FZO), then you’ll need to look at the makeup of their share registry. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.
Family Zone Cyber Safety is a small company with a market capitalization of A$304 million, so it may still fly under the radar of many institutional investors. Our analysis of societal ownership below shows that institutions own shares in society. Let’s take a closer look at what different types of shareholders can tell us about Family Zone Cyber Safety.
Check out our latest analysis for Family Zone Cyber Safety
What does institutional ownership tell us about the cybersecurity of the Home Zone?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Family Zone Cyber Safety has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Family Zone Cyber Safety’s historical revenue and earnings below, but keep in mind there’s always more to tell.
It appears that hedge funds own 11% of shares in Family Zone Cyber Safety. This is worth noting, as hedge funds are often quite active investors, who may try to influence management. Many want value creation (and a rise in share price) in the short to medium term. The company’s largest shareholder is McCusker Holdings Pty. Ltd., with a 13% stake. With 11% and 7.8% of the outstanding shares respectively, Regal Funds Management Pty Limited and Perennial Value Management Limited are the second and third largest shareholders. Additionally, CEO Timothy Levy owns 1.5% of the company’s stock.
Looking at our ownership data, we found that 19 of the major shareholders collectively own less than 50% of the share register, implying that no single individual holds a majority stake.
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 a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.
Family Zone Cybersecurity Insider Property
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.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would likely be interested to learn that insiders hold shares in Family Zone Cyber Safety Limited. It has a market capitalization of just A$304 million and insiders hold A$27 million worth of shares, in their own name. This shows at least some alignment. You can click here to see if these insiders have been buying or selling.
General public property
The general public, who are usually individual investors, hold a substantial 58% stake in Family Zone Cyber Safety, which suggests that it is quite a popular stock. 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
We can see that private companies hold 13% of the issued shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Take risks for example – Family Zone Cyber Safety a 3 warning signs (and 2 that are a little concerning) that we think you should know about.
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.