Loma Negra Compañía Industrial Argentina Sociedad Anónima's (NYSE:LOMA) top owners are private companies with 52% stake, while 22% is held by institutions
Key Insights
The considerable ownership by private companies in Loma Negra Compañía Industrial Argentina Sociedad Anónima indicates that they collectively have a greater say in management and business strategy
52% of the company is held by a single shareholder (Participações Morro Vermelho S.A.)
Institutions own 22% of Loma Negra Compañía Industrial Argentina Sociedad Anónima
Every investor in Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) should be aware of the most powerful shareholder groups. With 52% stake, private companies 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).
Meanwhile, institutions make up 22% of the company’s shareholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let's delve deeper into each type of owner of Loma Negra Compañía Industrial Argentina Sociedad Anónima, beginning with the chart below.
Check out our latest analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima
What Does The Institutional Ownership Tell Us About Loma Negra Compañía Industrial Argentina Sociedad Anónima?
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.
Loma Negra Compañía Industrial Argentina Sociedad Anónima 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 Loma Negra Compañía Industrial Argentina Sociedad Anónima, (below). Of course, keep in mind that there are other factors to consider, too.
It looks like hedge funds own 5.0% of Loma Negra Compañía Industrial Argentina Sociedad Anónima shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Looking at our data, we can see that the largest shareholder is Participações Morro Vermelho S.A. with 52% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 6.1% of the shares outstanding, followed by an ownership of 5.3% by the third-largest shareholder.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Loma Negra Compañía Industrial Argentina Sociedad Anónima
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.
General Public Ownership
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Loma Negra Compañía Industrial Argentina Sociedad Anónima. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
It seems that Private Companies own 52%, of the Loma Negra Compañía Industrial Argentina Sociedad Anónima stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
It appears to us that public companies own 5.2% of Loma Negra Compañía Industrial Argentina Sociedad Anónima. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Loma Negra Compañía Industrial Argentina Sociedad Anónima better, we need to consider many other factors. Take risks for example - Loma Negra Compañía Industrial Argentina Sociedad Anónima has 3 warning signs we think you should be aware of.
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.
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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.
