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
- The largest shareholder of the company is Participações Morro Vermelho S.A. with a 52% stake
- 31% of Loma Negra Compañía Industrial Argentina Sociedad Anónima is held by Institutions
Every investor in Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 5.6% decrease in the stock price last week, private companies suffered the most losses, but institutions who own 31% stock also took a hit.
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?
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.
As you can see, institutional investors have a fair amount of stake in Loma Negra Compañía Industrial Argentina Sociedad Anónima. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.
We note that hedge funds don't have a meaningful investment in Loma Negra Compañía Industrial Argentina Sociedad Anónima. Our data shows that Participações Morro Vermelho S.A. is the largest shareholder 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. Meanwhile, the second and third largest shareholders, hold 7.9% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
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. 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.
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. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.
General Public Ownership
The general public, who are usually individual investors, hold a 11% stake in Loma Negra Compañía Industrial Argentina Sociedad Anónima. 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 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
We can see that public companies hold 5.2% of the Loma Negra Compañía Industrial Argentina Sociedad Anónima shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
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.
I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.