What type of shareholder owns South32 Limited (ASX: S32)? – Simply Wall St News



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All South32 Limited (ASX: S32) investors need to know the most powerful shareholder groups.
Institutions will often hold shares in larger companies and we expect insiders to own a significant percentage of the smaller ones.
Companies that formerly belonged to the public sector generally have a lower insider property.

With a market capitalization of 19 billion Australian dollars, South32 is rather large. We expected to see institutional investors on the register. Companies of this size are generally well known to individual investors.
In the table below, we can see that
the institutions hold shares in the company.
We can zoom in on the different property groups to learn more about S32.


Check out our latest badysis for South32


ASX: Property Summary S32, April 6, 2019
ASX: Property Summary S32, April 6, 2019

What is institutional ownership telling us about South32?

In general, institutions measure against a benchmark when communicating with their own investors. As a result, they often become more enthusiastic about an action once it is included in a major index. We expected most companies to have registered institutions, especially if they are growing.

We can see that South32 has institutional investors; and they hold 40% of the stock.
This may indicate that the company has some degree of credibility in the investor community. However, it is better not to rely on the supposed validation of institutional investors. They, too, sometimes go wrong.
If multiple institutions change their views on a stock at the same time, the price of the stock may fall quickly. It is therefore necessary to consult the income history of South32, below. Of course, the future is what really matters.


ASX: Income statement S32 as of April 6, 2019
ASX: Income statement S32 as of April 6, 2019

We note that hedge funds do not have a significant investment in South32.
There is a reasonable number of badysts covering the stock, so it may be useful to know their overall vision of the future.

Insider property of South32

While the precise definition of an insider may be subjective, almost everyone views board members as insiders.
The management of the company runs the company, but the CEO will report to the board, even if he is a member.

I generally consider that property by an insider is a good thing. However, it is sometimes difficult for other shareholders to hold the board of directors accountable.

Our information suggests that the insiders of South32 Limited hold less than 1% of the company.
This is a very large company, so it would be surprising to see insiders own a large part of it. Although their participation is less than 1%, we can see that board members collectively hold A $ 21 million worth of shares (at current prices).
In this kind of situation, it may be more interesting to see if these insiders have bought or sold.

Property of the general public

The general public – primarily retail investors – owns 54% of South32.
This level of ownership gives retail investors the power to influence key policy decisions such as board composition, executive compensation and dividend payout ratio.

Next steps:

If it is worth considering the different groups that own a business, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can also, by accessing this free chart of historical incomes and incomes in this detailed graph.

If you prefer to find out what badysts are predicting in terms of future growth, do not miss this opportunity. free report on badysts' forecasts.

NB: The figures in this article are calculated using the data of the last twelve months, which refer to the twelve months ending on the last date of the month of the date of the financial statements. This may not correspond to the figures of the annual report of the year.

Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.

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