What types of shareholders own IGO Limited (ASX: IGO)?
If you want to know who really controls IGO Limited (ASX: IGO), then you will have to look at the composition of their share register. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Companies that were previously state-owned tend to have fewer insiders.
IGO is a pretty big company. It has a market capitalization of 7.1 billion Australian dollars. Normally, institutions would own a significant share of a company of this size. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about IGO.
See our latest review for IGO
What does institutional ownership tell us about IGOs?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that IGO has institutional investors; and they own a large portion of the company’s shares. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out IGO’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
IGO is not owned by hedge funds. The main shareholder of the company is Yandal Investments Pty Ltd, with an 8.8% stake. Meanwhile, the second and third largest shareholders hold 7.9% and 6.2% of the outstanding shares, respectively.
A closer look at our ownership figures suggests that the top 18 shareholders have a combined 50% ownership, implying that no shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
IGO Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of IGO Limited. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. Keep in mind that this is a large company and insiders own shares worth A $ 40 million. The absolute value can be more important than the proportional part. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
The general public, with a 46% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
It seems that private companies own 12% of IGO shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it is worth noting as an area for further research.
While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we have identified 1 warning sign for IGO that you should be aware of.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
If you decide to trade IGO, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account. Promoted
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.