Yahoo Autos Do Institutions Own The a2 Milk Company Limited (NZSE:ATM) Shares?
A look at the shareholders of The a2 Milk Company Limited (NZSE:ATM) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
a2 Milk is a pretty big company. It has a market capitalization of NZ$7.2b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about a2 Milk.
Check out our latest analysis for a2 Milk
What Does The Institutional Ownership Tell Us About a2 Milk?
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.
a2 Milk already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of a2 Milk, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. a2 Milk is not owned by hedge funds. The Vanguard Group, Inc. is currently the largest shareholder, with 6.9% of shares outstanding. The second and third largest shareholders are JPMorgan Chase & Co, Private Banking and Investment Banking Investments and BlackRock, Inc., with an equal amount of shares to their name at 6.4%.
A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
