Retail investors account for 54% of Tyro Payments Limited's (ASX:TYR) ownership, while institutions account for 30%

Key Insights Tyro Payments' significant retail investors ownership suggests that the key decisions are influenced by...

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Key Insights Tyro Payments' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public A total of 25 investors have a majority stake in the company with 45% ownership To get a sense of who is truly in control of Tyro Payments Limited ( ), it is important to understand the ownership structure of the business. With 54% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, institutions make up 30% of the company’s shareholders. 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 Tyro Payments.



Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Tyro Payments already has institutions on the share registry.

Indeed, they own a respectable stake in the company. 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 supposed validation that comes with institutional investors.

They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Tyro Payments, (below).

Of course, keep in mind that there are other factors to consider, too. It would appear that 6.2% of Tyro Payments shares are controlled by hedge funds.

That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Regal Partners Limited is currently the company's largest shareholder with 6.

2% of shares outstanding. Yarra Funds Management Limited is the second largest shareholder owning 5.7% of common stock, and Aware Super Pty Ltd holds about 4.

9% of the company stock. 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. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing.

However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own some shares in Tyro Payments Limited. It has a market capitalization of just AU$541m, and insiders have AU$44m worth of shares, in their own names.

Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking The general public, mostly comprising of individual investors, collectively holds 54% of Tyro Payments shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the . If you would prefer discover what analysts are predicting in terms of future growth, do not miss this .

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