The large shareholder groups of Franchise Group, Inc. (NASDAQ: FRG) have power over the company. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
Franchise Group isn’t huge, but it’s not particularly small either. He has a market cap of US $ 1.5 billion, which means he generally expects to see certain institutions listed in the stock register. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Franchise Group.
Check out our latest analysis for Franchise Group
What does institutional ownership tell us about the franchise group?
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.
As you can see, institutional investors have a significant share of the capital of Franchise Group. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth looking at the Franchise Group profit history below. Of course, the future is what really matters.
Franchise Group is not owned by hedge funds. Company CEO Brian Kahn is the largest shareholder with 18% of the shares outstanding. Vintage Capital Management, LLC is the second largest shareholder with 12% of the common stock, and BlackRock, Inc. owns approximately 5.5% of the company’s stock.
Upon closer inspection, we found that more than half of the company’s stock is owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at the expected growth quite easily.
Insider ownership of the franchise group
The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company reports to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders retain a significant stake in Franchise Group, Inc. It is very interesting that insiders have a significant US $ 301 million stake in this US $ 1.5 billion company. Most would say it shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have bought or sold.
General public property
The general public holds 25% of the capital of Franchise Group. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
With a 12% stake, private equity firms could influence the board of directors of the Franchise Group. Some might like this, as sometimes private capital is activists holding management accountable. But other times, the private equity sells, after you take the company public.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Concrete example: we have spotted 3 warning signs for Franchise Group you need to be aware of it, and one of them is of concern.
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 from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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