key insights

  • Given the significant stake in the stock by financial institutions, Technology One's stock price may be sensitive to trading decisions by financial institutions

  • 51% of the business is owned by the top 18 shareholders

  • 12% of Technology One is owned by insiders

If you want to know who really controls Technology One Limited (ASX:TNE), you'll have to take a look at the makeup of its share registry. We can see that institutional investors hold the majority, accounting for his 47% ownership in the company. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).

Because institutional investors have access to large amounts of capital, their market trends tend to be closely monitored by retail and retail investors. Therefore, having significant institutional investors invested in a company is often considered a desirable characteristic.

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

Check out our latest analysis for Technology One.

Ownership breakdownOwnership breakdown

Ownership breakdown

What does institutional ownership tell us about Technology One?

Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.

We can see that Technology One has institutional investors. And they own a significant portion of the company's stock. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Technology One, (below). Of course, keep in mind that there are other factors to consider as well.

Profit and revenue growthProfit and revenue growth

Profit and revenue growth

Hedge funds don't have many shares in Technology One. John McTaggart is currently the company's largest shareholder with 7.6% of outstanding shares. For context, the second largest shareholder holds about 5.4% of the shares outstanding, followed by an ownership of 4.7% by the third largest shareholder.

Upon further investigation, we found that the top 18 companies collectively own 51% of the company, suggesting that no single shareholder has significant control over the company. Ta.

Researching institutional ownership is a good way to assess and filter a stock's expected performance. The same can be done by studying analyst sentiment. There are a significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.

Insider ownership in Technology One

The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.

Insider ownership is positive when it signals leaders are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative depending on the situation.

It appears that insiders own a significant portion of Technology One Limited. It has a market capitalization of just AU$5.4b, but insiders have AU$672m worth of shares in their own names. That's very important. It's good to see this level of investment. Here you can see if insiders have been buying recently.

Open to the public

With a 41% stake, the general public (mainly retail investors) has some influence over Technology One. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.

Next steps:

I think it would be very interesting to find out who owns the company. But to really gain insight, you need to consider other information as well.

Many people find it convenient This is to find out more about how a company has performed in the past.You can access this Detailed graph Analysis of past earnings, revenue, and cash flow.

If you're like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.

Note: The numbers in this article are calculated using data from the previous 12 months and 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 full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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