If you want to know who really controls Rubicon Water Limited (ASX:RWL), you have to look at the composition of its share register. And the group with the biggest piece of the pie are private insiders with 42% ownership. In other words, the group stands to gain the most if the share price rises (or suffer the most loss if it falls).
As such, many of Rubicon Water’s insiders are at stake, and every decision they make regarding the future of the company is material from a financial perspective.
The chart below expands on the various ownership groups of Rubicon Water.
Check out the latest analysis of Rubicon Water
What can institutional ownership tell us about Rubicon Water?
Institutional investors typically compare their returns to those of commonly followed indices. As such, they typically look to acquire large companies included in the relevant benchmark index.
You can see that Rubicon Water has institutional investors. They own a significant portion of the company’s stock. This may indicate that the company has some credibility in the investment community. However, caution should be exercised in relying on the validation that institutional investors assume. They get it wrong sometimes too. When shares are owned by multiple institutions, there is always the risk of getting into a “congested deal”. If such a deal goes wrong, multiple parties may compete to sell the stock fast. This risk is higher for companies with no history of growth. Here are Rubicon Water’s past revenues and earnings, but remember there’s always more to the story.
Rubicon Water is not owned by a hedge fund. Gordon Dickinson is currently the company’s largest shareholder with his 13% of outstanding shares. Meanwhile, the second and third largest shareholders hold his 12% and his 11% respectively of the outstanding shares. The second largest shareholder, David Orton, also happens to have the title of senior key his executive. Additionally, the company’s CEO, Bruce Rogerson, directly owns his 9.5% of the total outstanding shares.
Our research also uncovered the fact that about 56% of companies are controlled by the top five shareholders, suggesting that these owners have significant influence over the business.
It makes sense to study institutional investor data for companies, but it also makes sense to study analyst sentiment to get an idea of where the wind is heading. As far as we know, there’s been no analyst coverage of the company, so it’s probably keeping a low profile.
Insider Ownership of Rubicon Water
While the precise definition of an insider can be subjective, we believe that most directors are insiders. Management finally answers to the board. However, it is not uncommon for managers to be members of the board of directors, especially for founders and CEOs.
Insider ownership is positive if leadership shows that they think like true owners of the company. However, high insider ownership can also give greater power to smaller groups within the company. This can be negative in some situations.
Our information suggests that insiders have a significant stake in Rubicon Water Limited. The insider holds his A$64 million stake in this A$155 million business. This could suggest that the founder still owns a lot of stock. You can check if they are buying or selling by clicking here.
The general public (consisting primarily of private investors) with 11% ownership has some influence over Rubicon Water. Ownership of this magnitude is substantial, but may not be sufficient to change company policy if decisions are out of sync with other major shareholders.
Private Company Ownership
A private company appears to own 34% of Rubicon Water’s shares. Private companies may be related parties. An insider may have an interest in a public company through his or her holdings in a private company rather than through his or her ability as an individual. It is difficult to draw broad conclusions, but it deserves attention as an area for further research.
I think it will be very interesting to see who exactly owns the company. But for true insight, other information must also be considered. To do so, you should be aware of the following: 1 warning sign Found in Rubicon Water.
If you want to check out another company – one with potentially great financials – don’t miss freedom An interesting list of companies backed by strong financial data.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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