Investment group

What type of shareholders does BrightSphere Investment Group Inc. (NYSE: BSIG) have?

A look at the shareholders of BrightSphere Investment Group Inc. (NYSE: BSIG) can tell us which group is the most powerful. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of $1.8 billion, BrightSphere Investment Group is a decent size, so it’s probably on the radar of institutional investors. Looking at our ownership group data (below), it appears that institutional investors have bought the company. Let’s dig deeper into each owner type to learn more about BrightSphere Investment Group.

NYSE: BSIG ownership breakdown as of January 21, 2022

What does institutional ownership tell us about BrightSphere Investment 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 is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

As you can see, institutional investors own a sizeable portion of BrightSphere Investment Group. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out BrightSphere Investment Group’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE: BSIG Earnings and Revenue Growth January 21, 2022

Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. Our data shows that hedge funds own 11% of BrightSphere Investment Group. This is worth noting, as hedge funds are often quite active investors, who may try to influence management. Many want value creation (and a rise in share price) in the short to medium term. Paulson & Co. Inc. is currently the largest shareholder, with 11% of the shares outstanding. BlackRock, Inc. is the second largest shareholder with 11% of the common stock and The Vanguard Group, Inc. owns approximately 5.9% of the company’s stock.

We dug a little deeper and found that 10 of the major shareholders make up about 51% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thereby balancing everyone’s interests somewhat.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

BrightSphere Investment Group Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that BrightSphere Investment Group Inc. insiders own less than 1% of the company. Keep in mind this is a big company and insiders own $11 million worth of stock. The absolute value can be more important than the proportional share. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.

General public property

With a 13% stake, the general public, consisting primarily of individual investors, has some influence over BrightSphere Investment Group. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with BrightSphere Investment Group (at least 1 which doesn’t sit well with us), and understanding them should be part of your investment process.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.