Institutions' substantial holdings in Liberty Latin America implies that they have significant influence over the company's share price
A total of 18 investors have a majority stake in the company with 51% ownership
Recent purchases by insiders
To get a sense of who is truly in control of Liberty Latin America Ltd. (NASDAQ:LILA), it is important to understand the ownership structure of the business. With 58% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Last week's 6.5% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 9.8% and last week's gain would have been more than welcomed.
Let's take a closer look to see what the different types of shareholders can tell us about Liberty Latin America.
What Does The Institutional Ownership Tell Us About Liberty Latin America?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Liberty Latin America does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Liberty Latin America's historic earnings and revenue below, but keep in mind there's always more to the story.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Liberty Latin America. Searchlight Capital Partners, L.P. is currently the largest shareholder, with 7.3% of shares outstanding. For context, the second largest shareholder holds about 6.7% of the shares outstanding, followed by an ownership of 6.0% by the third-largest shareholder. Furthermore, CEO Balan Nair is the owner of 1.4% of the company's shares.
A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Liberty Latin America
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of Liberty Latin America Ltd.. It has a market capitalization of just US$1.9b, and insiders have US$202m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
General Public Ownership
The general public, who are usually individual investors, hold a 22% stake in Liberty Latin America. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Equity Ownership
Private equity firms hold a 7.3% stake in Liberty Latin America. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Liberty Latin America better, we need to consider many other factors.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
キーインサイト
機関投資家がLiberty Latin Americaを支配する実質的な所有権を持っていることは、彼らが会社の株価に大きな影響力を持っていることを意味します。
Liberty Latin Americaには機関投資家がいることがわかります。そして、彼らは会社の株式の良い部分を所有しています。これは、投資コミュニティで会社がある程度の信頼性を持っていることを示すことができます。ただし、機関投資家が持つ言わば検証に頼ることは控えることがベストです。彼ら自身も時に間違えることがあるからです。複数の機関が株を所有している場合、いつでも詰め込まれた取引のリスクがあります。そのような取引が誤った方向に向かうと、複数の当事者がストックを早く売却するために競合する可能性があります。これは成長の歴史を持たない会社のリスクが高いためです。Liberty Latin Americaの歴史的な収益と売上高は以下に記載されていますが、常に物語に欠ける部分があることに注意してください。
発行済株式の半数以上が機関投資家が所有しているため、その傾向に耳を傾ける必要があるでしょう。ヘッジファンドがLiberty Latin Americaに対して有意義な投資をしていないことに注意する必要があります。Searchlight Capital Partners, L.P.は、現在、発行済株式の7.3%を所有しています。次に、2番目に大きな株主が発行済株式の約6.7%、3番目に大きな株主が6.0%を所有しています。さらに、CEOのBalan Nairは会社の株式の1.4%を所有しています。
Liberty Latin America Ltd.の取締役会メンバーが実際に株を保有していることが示されており、彼ら自身の名前で2002万ドル相当の株式を保有しています。これは非常に意義深いことです。多くの人々が、自分たちと同じように投資する取締役会が観察できることを嬉しく思うでしょう。最近の取引の情報を示す無料のチャートにアクセスしたい場合は、このチャートにアクセスしてください。
一般市民の所有
通常、個人投資家である一般大衆は、Liberty Latin Americaの株式の22%を所有しています。この所有権の大きさは、政策決定を有利に左右するほど十分な大きさではないかもしれませんが、彼らは依然として会社の政策に集団的な影響を与えることができます。
pe所有権
プライベートエクイティ企業はLiberty Latin Americaの7.3%を所有しています。これは、彼らが主要な政策決定に影響力を持つ可能性があることを示しています。このようなホルダーは、投資を公開した後に退出する場合があります。また、私募投資会社は、市場が会社の価値を認識するのを助ける戦略を促進することができるため、一部の投資家はこれに勇気づけられるかもしれません。
次のステップ:
会社の株を所有している異なるグループを考えることは常に価値があります。ただし、Liberty Latin Americaをより理解するためには、多くの他の要因を考慮する必要があります。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。