Loma Negra Compañía Industrial Argentina Sociedad Anónima's (NYSE:LOMA) largest shareholders are private companies with 52% ownership, institutions own 23%
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.)
Institutional ownership in Loma Negra Compañía Industrial Argentina Sociedad Anónima is 23%
If you want to know who really controls Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA), then you'll have to look at the makeup of its share registry. With 52% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, institutions make up 23% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's take a closer look to see what the different types of shareholders can tell us about Loma Negra Compañía Industrial Argentina Sociedad Anónima.
See 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?
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 Loma Negra Compañía Industrial Argentina Sociedad Anónima does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Loma Negra Compañía Industrial Argentina Sociedad Anónima's historic earnings and revenue below, but keep in mind there's always more to the story.
It would appear that 5.0% of Loma Negra Compañía Industrial Argentina Sociedad Anónima shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Participações Morro Vermelho S.A. is currently the company's largest shareholder with 52% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 6.2% and 5.3%, of the shares outstanding, respectively.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Loma Negra Compañía Industrial Argentina Sociedad Anónima
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.
General Public Ownership
With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Loma Negra Compañía Industrial Argentina Sociedad Anónima. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 52%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Public Company Ownership
It appears to us that public companies own 5.2% of Loma Negra Compañía Industrial Argentina Sociedad Anónima. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
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 2 warning signs we think you should be aware of.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
