Do institutions own shares of the Australian Unity Office Fund (ASX:AOF)?

Every investor in the Australian Unity Office Fund (ASX:AOF) should know the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.

The Australian Unity Office Fund is a small company with a market capitalization of A$396 million, so it may still fly under the radar of many institutional investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. Let’s dig deeper into each owner type to learn more about Australian Unity Office Fund.

Check out our latest analysis for Australian Unity Office Fund

distribution of property

What does institutional ownership tell us about Australia’s Unity Office fund?

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.

As you can see, institutional investors hold a sizeable portion of the Australian Unity Office Fund. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth checking out the earnings history of the Australian Unity Office Fund below. Of course, the future is what really matters.

earnings-and-revenue-growth

earnings-and-revenue-growth

It would seem that 5.4% of the shares of the Australian Unity Office Fund are controlled by hedge funds. 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. Looking at our data, we can see that the major shareholder is Taverner Pty Ltd with 11% of the shares outstanding. With 8.8% and 8.1% of the outstanding shares respectively, Taverners J Pty Ltd and Australian Unity Property Limited are the second and third largest shareholders.

We also observed that the top 7 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.

Australian Unity Office Fund Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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 most recent data indicates that insiders own less than 1% of the Australian Unity Office Fund. However, insiders may have an indirect interest through a more complex structure. Board members appear to hold no more than AU$3.6 million in shares in the AU$396 million company. Many investors in small companies prefer to see the board more heavily invested. You can click here to see if these insiders have been buying or selling.

General public property

With a 24% stake, the general public, consisting mainly of individual investors, has some influence over the Australian Unity Office Fund. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Private Company Ownership

Our data indicates that private companies own 39% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Be aware that Australian Unity Office Fund displays 2 warning signs in our investment analysis you should know…

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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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.

Jose C. Birney