Key findings
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Institutions’ significant holdings in PPHE Hotel Group suggest that they have a significant influence on the company’s share price
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A total of 4 investors own the majority of the company with 56%
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Insiders own 15% of PPHE Hotel Group
To get a sense of who really has control of PPHE Hotel Group Limited (LON:PPH), it is important to understand the ownership structure of the company. We can see that institutions own the lion’s share of the company at 50%. That means the group benefits the most when the stock rises (or loses the most when there is a downturn).
Because institutional investors have access to huge amounts of capital, their market movements are often closely watched by retail or individual investors. Therefore, it is often considered desirable to have a significant amount of institutional money invested in a company.
Let’s take a closer look at each of the PPHE Hotel Group’s ownership types using the table below.
Check out our latest analysis for PPHE Hotel Group
What does institutional ownership tell us about PPHE Hotel 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’s included in a major index. We would expect most companies to have some institutions on their registry, especially if they’re growing.
As you can see, institutional investors own a sizable share of PPHE Hotel Group. This means that analysts at those institutions have looked at the stock and they like it. But, like anyone, they can be wrong. When multiple institutions own a stock, there is always a risk that they are involved in a “crowd trade.” If such a trade goes wrong, multiple parties may be competing to sell the stock quickly. This risk is higher with a company without a history of growth. You can see PPHE Hotel Group’s historical earnings and revenue below, but remember there’s always more to the story.
Hedge funds don’t own a lot of shares in PPHE Hotel Group. Red Sea Group is currently the largest shareholder with 29% of the outstanding shares. In comparison, the second and third largest shareholders hold about 11% and 8.3% of the shares, respectively. Boris Ivesha, the second largest shareholder, also happens to be the co-chief executive officer.
Upon closer inspection, we found that 56% of the shares are owned by the four largest shareholders. In other words, these shareholders have a significant say in the company’s decisions.
Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst opinions. There are many analysts covering the stock, so it might be worth looking at their forecasts as well.
Insider ownership of PPHE Hotel Group
The definition of an insider may vary slightly in different countries, but members of the board of directors are always included. The company’s management is accountable to the board of directors, which should represent the interests of the shareholders. In particular, top managers are sometimes on the board of directors themselves.
Most people consider insider ownership to be a positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated in this group.
It appears that insiders own a significant proportion of PPHE Hotel Group Limited. The market capitalization is just £554m, and insiders own £82m worth of shares in their own names. It’s great to see insiders investing so much in the company. It might be worth checking to see if those insiders have been buying recently.
Public property
With an ownership share of 28%, the public, which consists mostly of individual investors, has some influence over PPHE Hotel Group. While this ownership size is significant, it may not be enough to change company policy if the decision does not coincide with that of other major shareholders.
Ownership of public companies
It appears to us that listed companies own 7.8% of PPHE Hotel Group. We cannot be sure, but it is quite possible that this is a strategic holding. The companies could be similar or work together.
Next Steps:
While it is worth considering the different groups that own a company, there are other factors that are even more important. Take risks, for example – PPHE Hotel Group has 2 warning signs (and 1 that shouldn’t be ignored) that we think you should know about.
If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the future.
NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
