One Heritage Group PLC (LON:OHG) share price fell 16% last week; private companies would not be happy

A look at the shareholders of One Heritage Group PLC (LON:OHG) can tell us which group is the most powerful. The group with the largest number of shares in the company, around 55% to be precise, are private companies. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

As the market capitalization fell to £735million last week, private companies would have suffered the highest losses than any other group of shareholders in the company.

In the table below we zoom in on the different ownership groups of One Heritage Group.

Our analysis indicates that OHG is potentially overrated!

LSE: OHG Ownership Breakdown October 13, 2022

What does institutional ownership tell us about a heritage group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Institutions have a very small stake in One Heritage Group. This indicates that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. So if the business itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rise in the stock price when a few large institutions want to buy a certain stock at the same time. Earnings and revenue history, which you can see below, could be helpful in determining whether more institutional investors will want the stock. Of course, there are also many other factors to consider.

earnings-and-revenue-growth
LSE:OHG Earnings and Revenue Growth October 13, 2022

Hedge funds don’t have a lot of shares in One Heritage Group. The company’s largest shareholder is One Heritage Property Development Limited with a 54% stake. This essentially means that they have considerable influence, if not absolute control, over the future of the company. In comparison, the second and third shareholders hold around 4.2% and 3.8% of the shares. Additionally, CEO Jason Upton owns 2.6% of the company’s stock.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Ownership by an insider of a wealth group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders hold a significant stake in One Heritage Group PLC. Insiders have a £101m stake in the £735m business. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

With a 30% stake, the general public, consisting mainly of individual investors, has some influence over One Heritage Group. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Private Company Ownership

We can see that private companies hold 55% of the issued shares. It might be worth exploring this further. 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 a strategic interest in the company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. To do this, you need to find out about the 3 warning signs we spotted with One Heritage Group (including 1 which is of concern).

Sure this may not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.

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.

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