What types of shareholders own Worley Limited (ASX: WOR)?
If you want to know who really controls Worley Limited (ASX: WOR), then you will have to look at the composition of its share ledger. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. Companies that were previously owned by the state tend to have fewer insiders.
Worley is a pretty big company. It has a market capitalization of AU $ 6.0 billion. Normally, institutions would own a significant share of a company of this size. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s dig deeper into each type of owner to find out more about Worley.
See our latest analysis for Worley
What does institutional ownership tell us about Worley?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Worley has institutional investors; and they own a large portion of the company’s stock. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Worley’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Worley does not belong to hedge funds. The main shareholder of the company is Dar Al-Handasah Consultants Shair and Partners Holdings Limited, with a 23% stake. Jacobs Engineering Group Inc. is the second largest shareholder holding 9.8% of the common shares, and T. Rowe Price Group, Inc. owns approximately 5.2% of the shares of the company.
Looking at the register of shareholders, we can see that 51% of the property is controlled by the top 11 shareholders, which means that no shareholder has a controlling interest in the property.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Worley Insider Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own shares of Worley Limited. The insiders have a significant stake worth A $ 226 million. Most would see this as a real benefit. Most would say it shows the alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.
General public property
The general public has a 44% stake in Worley. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
It appears that private companies own 27% of Worley’s shares. It may be worth pursuing the question further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.
Public enterprise ownership
State-owned companies currently own 9.8% of Worley’s shares. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider, for example, the ever-present specter of investment risk. We have identified 3 warning signs with Worley and understanding them should be part of your investment process.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
When trading Worley or any other investment, use the platform considered by many to be the gateway for professionals to the global market, Interactive Brokers. You get the cheapest * trading on stocks, options, futures, forex, bonds and funds from around the world from a single integrated account.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.