What Type Of Shareholder Owns Freelancer Limited’s (ASX:FLN)?

What Type Of Shareholder Owns Freelancer Limited’s (ASX:FLN)?

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Every investor in Freelancer Limited ( ASX:FLN ) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’ With a market capitalization of AU$321m, Freelancer is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it’s seems that institutions don’t own many shares in the company. Let’s delve deeper into each type of owner, to discover more about FLN. ASX:FLN Ownership Summary, April 25th 2019 What Does The Lack Of Institutional Ownership Tell Us About Freelancer? Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them. There are multiple explanations for why institutions don’t own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Freelancer might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely. ASX:FLN Income Statement, April 25th 2019 Hedge funds don’t have many shares in Freelancer. There is some analyst coverage of the stock, but it could still become more well known, with time. Insider Ownership Of Freelancer The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own the majority of Freelancer Limited. This means they can collectively make decisions for the company. Given it has a market cap of AU$321m, that means they have AU$262m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling. General Public Ownership The general public, with a 18% stake in the company, will not 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. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. I like to dive deeper […]

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