Beach Energy Limited's (ASX:BPT) market cap surged AU$91m last week, individual investors who have a lot riding on the company were rewarded

In This Article:

Key Insights

  • Significant control over Beach Energy by individual investors implies that the general public has more power to influence management and governance-related decisions

  • The top 7 shareholders own 50% of the company

  • Insiders have been buying lately

A look at the shareholders of Beach Energy Limited (ASX:BPT) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors were the biggest beneficiaries of last week’s 3.5% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Beach Energy.

Check out our latest analysis for Beach Energy

ownership-breakdown
ownership-breakdown

What Does The 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 registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Beach Energy's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in Beach Energy. Looking at our data, we can see that the largest shareholder is Seven Group Holdings Limited with 30% of shares outstanding. State Street Global Advisors, Inc. is the second largest shareholder owning 4.5% of common stock, and Macquarie Group, Ltd., Banking & Securities Investments holds about 4.4% of the company stock.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Beach Energy

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.