With 61% ownership, Gaming Realms plc (LON:GMR) boasts of strong institutional backing #UKFinance
CashNews.co
Significantly high institutional ownership implies Gaming Realms’ stock price is sensitive to their trading actions
A total of 8 investors have a majority stake in the company with 51% ownership
Insiders own 20% of Gaming Realms
To get a sense of who is truly in control of Gaming Realms plc (LON:GMR), it is important to understand the ownership structure of the business. We can see that institutions own the lion’s share in the company with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let’s delve deeper into each type of owner of Gaming Realms, beginning with the chart below.
See our latest analysis for Gaming Realms
AIM:GMR Ownership Breakdown November 17th 2024
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.
Gaming Realms 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Gaming Realms’ earnings history below. Of course, the future is what really matters.
AIM:GMR Earnings and Revenue Growth November 17th 2024
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don’t have a meaningful investment in Gaming Realms. The company’s largest shareholder is Union Bancaire Privee Asset Management LLC, with ownership of 14%. With 8.7% and 6.4% of the shares outstanding respectively, Michael Buckley and Canaccord Genuity Asset Management Limited are the second and third largest shareholders. Michael Buckley, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 a reasonable proportion of Gaming Realms plc. Insiders own UK£23m worth of shares in the UK£113m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Gaming Realms. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Our data indicates that Private Companies hold 3.8%, of the company’s shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we’ve discovered 1 warning sign for Gaming Realms that you should be aware of before investing here.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
