In 2022, Fresh's strategy team analysed the registry data of a eight ASX-listed companies over the period of January 2017 to December 2021. The report that if the company's shareholder growth exceeds that of 1.5 (i.e. for every 1 shareholder lost, 1.5 are gained), there appear to be positive correlations with its on-market performance. The inverse also appears to be true, where companies that went through periods of a growth ratio below 1 (i.e. lost more shareholders than they gained) experienced negative share price performance.
Whilst the above findings may seem obvious, few companies proactively track their shareholder growth ratio. Furthermore, the companies that emphasise engaging their shareholder base strengthen themselves against selloffs and maintain a shareholder growth ratio of more than 1.
Fresh recommends tracking your shareholder growth ratio, as it may be a leading indicator of shareholder movement and, therefore, share price performance.
The full report can be found here.
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