While institutions invested in Full House Resorts, Inc. (NASDAQ:FLL) benefited from last week's 11% gain, individual investors stood to gain the most
Key Insights
- The considerable ownership by individual investors in Full House Resorts indicates that they collectively have a greater say in management and business strategy
- The top 25 shareholders own 47% of the company
- Institutional ownership in Full House Resorts is 45%
If you want to know who really controls Full House Resorts, Inc. (NASDAQ:FLL), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While individual investors were the group that benefitted the most from last week’s US$11m market cap gain, institutions too had a 45% share in those profits.
In the chart below, we zoom in on the different ownership groups of Full House Resorts.
Check out our latest analysis for Full House Resorts
What Does The Institutional Ownership Tell Us About Full House Resorts?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Full House Resorts does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Full House Resorts' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Full House Resorts. Looking at our data, we can see that the largest shareholder is the CEO Daniel Lee with 4.8% of shares outstanding. The second and third largest shareholders are Private Management Group Inc and Catawba River Capital, with an equal amount of shares to their name at 4.8%.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Full House Resorts
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Full House Resorts, Inc.. As individuals, the insiders collectively own US$8.7m worth of the US$105m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 46% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Full House Resorts better, we need to consider many other factors. Be aware that Full House Resorts is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.