Who owns AGL (ASX:AGL) shares and does it really matter?

The AGL Energy Limited (ASX: AGL) share price is on the rebound following the broader market sell-off witnessed yesterday.

Currently, the company’s shares are up 1.46% to $6.26, which is around half of the 3.29% loss sustained on Thursday.

The company has been a hot topic with investors over recent months following its plans to simplify its business model. While the Australian energy giant is making strides, you may be wondering who owns AGL shares, and does it matter?

A deeper diver into AGL ownership

The sheer number of shareholders distributed across AGL’s registry totals 148,145 investors as of its most recent annual report.

Almost 60% of AGL’s shareholders are retail investors who own approximately 391 million AGL shares. This means that the wider public has some power to influence key decisions on matters such as executive bonuses.

However, as the size of the company’s holdings grows, fewer shareholders control a sizeable equity. In fact, the top 25 shareholders collectively hold less than half of the company’s register.

It’s no secret that institutions along with hedge funds often invest in well-established companies. As such, institutions make up around 40% of AGL’s entire shareholdings or 263 million shares.

Next up, private companies acquire just 0.4% of AGL with less than 2.7 million AGL shares held.

And lastly, individual insiders comprising of directors and the management team who have a stake of 0.1% in AGL. This is roughly 946,000 shares, representing the smallest portion, but not uncommon in medium to large-cap companies.

That being said, the biggest shareholder in AGL is State Street Global Advisors, Inc., with an ownership of about 8.1%. Taking up the second and third spot is Franklin Resources, and The Vanguard Group, each holding a 4.7% interest in AGL.

Understanding ownership can certainly add value, particularly if the company is backed by a sound institution. Furthermore, by keepinging an eye out for insider transactions, you can gain a better insight into what to expect. Often when a board or senior leadership member buy or sell the company’s shares, it provides an invaluable signal of whether the share is trading at a bargain or is valued expensively.

About the AGL share price

Over the past 12 months, the AGL share price has continued to plummet in value, losing almost 50% for investors. The company’s shares reached an all-time low of $5.10 in November before bargain hunters swooped in.

Based on valuation grounds, AGL presides a market capitalisation of approximately $4.12 billion, with approximately 658.38 million shares outstanding.

The post Who owns AGL (ASX:AGL) shares and does it really matter? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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