Prenetics Global Limited (NASDAQ:PRE) Share Price Falls 15% Last Week; individual investors would not be happy

To get an idea of ​​who actually controls Prenetics Global Limited (NASDAQ:PRE), it is important to understand the ownership structure of the company. We can see that individual investors hold the lion’s share of the company with 44% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

While individual investors’ holdings took a hit after prices fell 15% last week, insiders with their 29% also suffered.

In the table below we zoom in on the different ownership groups of Prenetics Global.

Before looking at the breakdown of owners, note that our analysis indicates that The PRE is potentially overvalued!

NasdaqGM:PRE Ownership Breakdown September 17, 2022

What does institutional ownership tell us about Prenetics Global?

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.

We can see that Prenetics Global has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking out the past earnings trajectory of Prenetics Global (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
NasdaqGM: PRE Earnings and Revenue Growth September 17, 2022

Prenetics Global is not owned by hedge funds. M&G Group Limited is currently the largest shareholder, with 11% of the outstanding shares. For context, the second shareholder owns approximately 8.8% of the outstanding shares, followed by an 8.3% ownership by the third shareholder. Sheng Wu Yeung, who is the second largest shareholder, also holds the title of general manager.

We dug a little deeper and found that 8 of the major shareholders make up about 52% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thus balancing everyone’s interests somewhat.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There is some analyst coverage of the stock, but it could still become better known over time.

Insider Ownership of Prenetics Global

The definition of an insider may differ slightly from country to country, but board members still matter. 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.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders hold a significant stake in Prenetics Global Limited. Insiders hold a $116 million stake in the $403 million 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

The general public, including retail investors, owns 44% of the company’s shares and therefore cannot be easily ignored. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Private companies appear to hold 6.2% of Prenetics Global shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Prenetics Global, we need to consider many other factors.

I like to dive deeper on the performance of a company in the past. You can find Earnings and Earnings History in this detailed graph.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

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.

Valuation is complex, but we help make it simple.

Find out if Prenetics Global is potentially overvalued or undervalued by viewing our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

Karen J. Nelson