45.45 F
London
March 3, 2024
PI Global Investments
Private Equity

Individual investors own 16% of PropertyGuru Group Limited (NYSE:PGRU) shares but private equity firms control 51% of the company


Key Insights

  • The considerable ownership by private equity firms in PropertyGuru Group indicates that they collectively have a greater say in management and business strategy

  • The top 2 shareholders own 51% of the company

  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in PropertyGuru Group Limited (NYSE:PGRU) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private equity firms with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 16% of the company’s stockholders.

Let’s delve deeper into each type of owner of PropertyGuru Group, beginning with the chart below.

See our latest analysis for PropertyGuru Group

ownership-breakdownownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About PropertyGuru Group?

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 PropertyGuru Group does have institutional investors; and they hold a good portion of the company’s stock. 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 PropertyGuru Group’s earnings history below. Of course, the future is what really matters.

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

earnings-and-revenue-growth

Hedge funds don’t have many shares in PropertyGuru Group. Our data shows that TPG Capital, L.P. is the largest shareholder with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 24% and 16% of the stock. In addition, we found that Hari Vembakkam Krishnan, the CEO has 1.3% of the shares allocated to their name.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of PropertyGuru Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership 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 in some circumstances.

Our most recent data indicates that insiders own some shares in PropertyGuru Group Limited. As individuals, the insiders collectively own US$39m worth of the US$642m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public– including retail investors — own 16% stake in the company, and hence can’t easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

Private equity firms hold a 51% stake in PropertyGuru Group. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Public Company Ownership

We can see that public companies hold 16% of the PropertyGuru Group shares on issue. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we’ve discovered 1 warning sign for PropertyGuru Group that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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



Source link

Related posts

I Squared invests US$403 million in Brazil’s Órigo Energia

D.William

Private equity in China heads for exits amid three-year stock slump, Economy News

D.William

LGPS Central appoints State Street as private markets fund administrator

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.