Beach Energy Limited (ASX:BPT) share price fell 3.9% last week; individual investors would not be happy

If you want to know who really controls Beach Energy Limited (ASX:BPT), then you will need to look at the composition of its share register. And the group that holds the biggest slice of the pie are individual investors with 47% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

As a result, individual investors as a group suffered the highest losses last week after the market capitalization plummeted by A$148 million.

Let’s take a closer look at what different types of shareholders can tell us about Beach Energy.

See our latest analysis for Beach Energy

ASX: distribution of ownership of BPT on September 20, 2022

What does institutional ownership tell us about Beach Energy?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Beach Energy already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. 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 Beach Energy’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ASX: BPT Earnings and Revenue Growth September 20, 2022

Beach Energy is not owned by hedge funds. Seven Group Holdings Limited is currently the company’s largest shareholder with 30% of the shares outstanding. For context, the second shareholder owns approximately 3.7% of the outstanding shares, followed by a 2.9% stake by the third shareholder.

Looking at the shareholder register, we can see that 50% of the ownership is controlled by the 24 major shareholders, which means that no shareholder has a controlling interest in the ownership.

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. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Beach Energy 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. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

We can see insiders holding shares of Beach Energy Limited. It’s a pretty big company, so it’s generally a positive to see a potentially meaningful alignment. In this case, they own around A$56 million worth of shares (at today’s prices). If you want to explore the issue of insider alignment, you can click here to see if insiders have been buying or selling.

General public property

With a 47% stake, the general public, consisting mostly of individual investors, has some influence over Beach Energy. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Ownership of a public company

Public companies currently hold 30% of Beach Energy shares. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Beach Energy, 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.

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 the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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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Karen J. Nelson