the main idea
Significant internal control over Green Cross Health involves business growth interests
The first 2 shareholders own 64% of the company
Property research combined with past performance data can help to better understand a security's potential.
If you want to know who really controls Green Cross Health Limited (NZSE:GXH), you need to look at the structure of the share register. We can see that private insiders hold the majority of the company at 37%. That is, the group will gain more when the stock goes up (or lose more when it goes down).
With such a significant stake in the company, insiders will have a strong incentive to make positive decisions.
In the table below we highlight the different ownership groups of Green Cross Health
Check out our latest Green Cross Health analysis
What does the lack of institutional ownership tell us about the health of Green Cross?
We institutional investors tend not to hold shares in very risky, under-traded or very small companies. Although we occasionally see large corporations without any registered entity, this is not particularly common.
There can be various reasons for an organization not to own shares in a company. In general, small newly listed companies do not attract much attention from fund managers as it will not be possible for large fund managers to gain a significant position in the company. On the other hand, it's always possible for professional investors to avoid a company because they don't think it's the best place for their money. Green Cross Health's revenue and earnings results (below) may not be convincing to institutional investors - or they simply haven't researched the company closely enough.
We note that hedge funds do not have significant investments in Green Cross Health. The company's largest shareholder is John Bagnall with 32% of the shares. By comparison, the second shareholder owns about 32% of the outstanding shares, followed by the third shareholder of 1.1%.
To make our study more interesting, we found that the 2 main shareholders hold a controlling stake in the company, which means they are powerful enough to influence the company's decisions.
While examining a company's institutional ownership can add value to your research, it is recommended to research analyst recommendations to better understand a stock's expected performance. We are currently not seeing any analyst reports on the stock, so the company is unlikely to receive widespread coverage.
Green Cross Health is internally owned
The definition of corporate insider can be subjective and vary from jurisdiction to jurisdiction. Our data reflect internal individuals, covering at least managers. The management of the company reports to the board of directors, which must represent the interests of the shareholders. In particular, sometimes the leaders themselves sit on the board.
Insider ownership is positive when it shows that managers think like the real owners of the company. However, strong internal involvement can bring tremendous power to a small group within the organization. Sometimes it can be negative.
Our data shows that insiders hold a significant stake in Green Cross Health Limited. Insiders have a $73 million stake in the $196 million deal. This may indicate that the founders still own a lot of shares. You can click here to see if they are bought or sold.
Common public property
The general public, usually individual investors, owns 30% of Green Cross Health. Although these groups don't necessarily make decisions, they can certainly have a real impact on how the company is run.
Owned by a private company
Apparently, 33% of Green Cross Health shares are owned by private companies. This may be worth further investigation. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have strategic interests in the company.
Next steps:
It is always useful to think about the different groups that own shares in a company. But to better understand Green Cross Health we need to consider many other factors. For example, here are 1 Green Cross health warning signs to watch out for before investing.
Of course , it may not be the best stock to buy . So check out our free collection of attractive clients with cheap money.
Note: The figures in this article are calculated on the basis of 12 months of data, relating to the 12 month period ending on the last day of the month in which the financial statements are dated. May not match annual report figures for full year.
Comment on this article? Worried about content? Contact us directly . You can email the editorial team at Simplywallst.com.
This article by Simply Wall St. is of a general nature. We only provide commentary based on historical data and analyst forecasts using unbiased methods and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to provide you with targeted long-term analysis based on fundamental data. Note that our analysis may not take into account price-sensitive companies or recent announcements of quality material Simply Wall St. no position in listed shares.
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