If you want to know who really controls International Personal Finance plc (LON:IPF), then you’ll need to look at the composition of their share register. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, interns often decrease their ownership over time. Warren Buffett said that he likes “a business with enduring competitive advantages that is run by capable, owner-oriented people.” Therefore, it is good to see some internal ownership, because it can suggest that the management is owner-oriented.
With a market cap of £307m, International Personal Finance is a small-cap stock, so it may not be well known to many institutional investors. Taking a look at our data on ownership groups (below), it seems that institutions are noticeable in the share register. Let’s take a closer look to see what different types of shareholders can tell us about international personal finance.
See our latest analysis of International Personal Finance
What does institutional ownership tell us about international personal finance?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. Therefore, they generally consider buying larger companies that are included in the relevant benchmark.
We can see that International Personal Finance has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for those institutions have looked at the stock and like it. But just like anyone else, they could be wrong. If multiple institutions change their opinion on a stock at the same time, the share price may drop rapidly. So it’s worth looking at International Personal Finance’s earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half of the issued shares, the board will likely have to pay attention to their preferences. International Personal Finance is not owned by hedge funds. Aberforth Partners LLP is currently the largest shareholder, with 14% of the outstanding shares. Meanwhile, the second and third largest shareholders own 12% and 10.0% of the outstanding shares, respectively. Also, we find that Gerard Ryan, the CEO, has 0.6% of the shares assigned to his name.
We dug a little deeper and found that 6 major shareholders make up about 51% of the record, implying that along with the larger shareholders, there are some smaller shareholders, somewhat balancing the interests of the others.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analyst sentiment to know which way the wind is blowing. Quite a few analysts cover stocks, so you could see anticipated growth pretty easily.
Internal Ownership of International Personal Finance
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Ultimately, management is accountable to the board. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated within this group.
We can see that insiders own shares in International Personal Finance plc. It has a market capitalization of just £307m and internal members hold £16m worth of shares, in their own name. Some would say this shows the alignment of interests between the shareholders and the board. But it might be worth checking to see if those experts have been selling.
General public property
The general public, with a 13% stake in the company, will not be easily ignored. While this size of ownership may not be enough to sway a political decision in your favor, they can still have a collective impact on company policies.
I find it very interesting to look at who exactly is the owner of a company. But to get a real insight, we also need to consider other information. Like the risks, for example. All companies have them, and we have seen 2 warning signs for international personal finance (of which 1 is significant!) that you should know.
But lately it is the future, not the past, that will determine how well the owners of this business will do. Therefore, we think it is advisable to take a look at this free report that shows if the analysts predict a better future.
Note: The figures in this article are calculated using data from the last twelve months, which refers to the 12-month period ending on the last day of the month in which the financial statement is dated. This may not be consistent with the annual report figures for the full year.
This Simply Wall St article is of a general nature. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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