Every investor in Impala Platinum Holdings Limited (JSE: IMP) needs to know the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Impala Platinum Holdings is a fairly large company. It has a market capitalization of R159b. Normally, institutions would own a significant share of a company of this size. In the graph below, we can see that institutional investors have bought into the company. Let’s dig deeper into each type of owner to find out more about Impala Platinum Holdings.

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What does institutional ownership tell us about Impala Platinum Holdings?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors have a significant stake in Impala Platinum Holdings. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Impala Platinum Holdings’ profit history below. Of course, the future is what really matters.

Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. Hedge funds don’t have a lot of shares in Impala Platinum Holdings. Public Investment Corporation Limited is currently the largest shareholder, with 18% of the shares outstanding. With 6.5% and 5.7% of shares outstanding respectively, BlackRock, Inc. and Coronation Fund Managers Limited are the second and third largest shareholders.

We also observed that the top 8 shareholders make up more than half of the share register, with a few smaller shareholders to some extent to balance the interests of the larger ones.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Insider ownership of Impala Platinum Holdings

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own less than 1% of Impala Platinum Holdings Limited in their own name. Being so important, we wouldn’t expect insiders to own a large chunk of the shares. Collectively, they own R38 million of shares. 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 20% stake in the company, will not be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Impala Platinum Holdings, there are many other factors that we need to consider. Concrete example: we have spotted 4 warning signs for Impala Platinum Holdings you have to be aware of that, and one of them makes us a little uncomfortable.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

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.

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 the mentioned stocks.

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