The largest shareholders of Global Indemnity Group, LLC (NYSE:GBLI) are private equity firms owning 43%, and institutions owning 23%.

The largest shareholders of Global Indemnity Group, LLC (NYSE:GBLI) are private equity firms owning 43%, and institutions owning 23%.

the main ideas

If you want to know who really controls Global Indemnity Group, LLC (NYSE:GBLI), you’ll have to look at the makeup of its share registry. The group that owns the largest piece of the pie is private equity firms, with an ownership percentage of 43%. In other words, the group will gain the most (or lose the most) from its investment in the company.

On the other hand, institutions own 23% of the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

Let’s take a closer look to see what the different types of shareholders can tell us about Global Indemnity Group.

View our latest analysis for Global Compensation Group

Collapse of ownership

What does institutional ownership tell us about the global compensation group?

Institutions typically measure themselves against a benchmark when reporting to their investors, so they often become more enthusiastic about a stock once it’s included in a major index. We expect most companies to have some institutions on the register, especially if they are growing.

We can see that Global Compensation Group has institutional investors; They own a large portion of the company’s shares. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the assumed validation that comes with institutional investors. They also make mistakes sometimes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell shares quickly. This risk is higher in a company that does not have a history of growth. You can see Global Indemnity Group’s historical earnings and revenue below, but keep in mind there’s always more to the story.

Profit and revenue growth

Profit and revenue growth

It appears that hedge funds own 18% of Global Indemnity Group shares. This catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near-term value for shareholders. Our data shows that Fox Paine & Company, LLC is the largest shareholder with 43% of shares outstanding. Richmond Hill Investments, LLC is the second largest shareholder owning 18% of the common stock, and Hotchkis and Wiley Capital Management, LLC owns approximately 7.5% of the company’s stock. In addition, we found that Joseph Brown, the CEO, has 1.1% of the shares allocated to his name.

A more detailed study of the shareholder registry showed us that two of the largest shareholders have a significant amount of ownership in the company, through their 61% stake.

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 is some analytical coverage of the stock, but it could still become more popular over time.

Internal Ownership of Global Compensation Group

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. The company’s management is accountable to the board of directors and the latter must represent the interests of shareholders. It is worth noting that sometimes high-level managers are themselves on the board of directors.

Most consider insider ownership a positive because it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our latest data indicates that insiders own some shares in Global Indemnity Group, LLC. It has a market capitalization of just US$403m, and insiders own US$25m worth of shares in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

Public ownership

The general public, usually individual investors, own a 10% stake in Global Indemnity Group. While this size of ownership may not be enough to influence a policy decision in their favor, they can still make a collective impact on company policies.

Private equity ownership

With a 43% stake, private equity firms can influence the global compensation group’s board. Some may like this, because private equity firms are sometimes activists who hold management accountable. But other times, private equity is sold, turning the company public.

Next steps:

While it is useful to consider the different groups that own a company, there are other factors that are even more important. Notice that the global compensation group appears One warning sign in our investment analysis You should know about…

If you’re like me, you may want to consider whether this company will grow or shrink. Fortunately, you can check this free report showing analyst forecasts for its future.

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

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This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using 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 into account your objectives or financial situation. We aim to offer you focused, long-term analysis driven by fundamental data. Note that our analysis may not take into account a company’s most recent price-sensitive announcements or qualitative materials. Simply put, Wall St has no position in any of the stocks mentioned.

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