While insiders own 25% of Recce Pharmaceuticals Ltd (ASX:RCE), retail investors are its largest shareholders with 55% ownership
Simply Wall St
Fri, December 26, 2025 at 7:35 PM EST
4 min read
In this article:
Key Insights
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The considerable ownership by retail investors in Recce Pharmaceuticals indicates that they collectively have a greater say in management and business strategy
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The top 25 shareholders own 45% of the company
To get a sense of who is truly in control of Recce Pharmaceuticals Ltd (ASX:RCE), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual insiders on the other hand have a 25% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
In the chart below, we zoom in on the different ownership groups of Recce Pharmaceuticals.
View our latest analysis for Recce Pharmaceuticals
What Does The Institutional Ownership Tell Us About Recce Pharmaceuticals?
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 have a fair amount of stake in Recce Pharmaceuticals. 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. 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 Recce Pharmaceuticals' earnings history below. Of course, the future is what really matters.
Recce Pharmaceuticals is not owned by hedge funds. Gavin Brown is currently the largest shareholder, with 14% of shares outstanding. With 8.5% and 4.2% of the shares outstanding respectively, Fidelity International Ltd and Macquarie Investment Management Limited are the second and third largest shareholders. In addition, we found that James Graham, the CEO has 2.4% of the shares allocated to their name.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.
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Insider Ownership Of Recce Pharmaceuticals
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems insiders own a significant proportion of Recce Pharmaceuticals Ltd. Insiders have a AU$44m stake in this AU$176m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public -- including retail investors -- own 55% of Recce Pharmaceuticals. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
Private Company Ownership
It seems that Private Companies own 5.5%, of the Recce Pharmaceuticals stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Recce Pharmaceuticals better, we need to consider many other factors. Be aware that Recce Pharmaceuticals is showing 4 warning signs in our investment analysis , and 2 of those can't be ignored...
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
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