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With 79% ownership of the shares, RM Infrastructure Income PLC (LON:RMII) is heavily dominated by institutional owners

In This Article:

Key Insights

  • Institutions' substantial holdings in RM Infrastructure Income implies that they have significant influence over the company's share price

  • A total of 10 investors have a majority stake in the company with 52% ownership

  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of RM Infrastructure Income PLC (LON:RMII), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 79% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

In the chart below, we zoom in on the different ownership groups of RM Infrastructure Income.

View our latest analysis for RM Infrastructure Income

ownership-breakdown
LSE:RMII Ownership Breakdown August 4th 2024

What Does The Institutional Ownership Tell Us About RM Infrastructure Income?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

RM Infrastructure Income 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 RM Infrastructure Income, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
LSE:RMII Earnings and Revenue Growth August 4th 2024

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. It looks like hedge funds own 5.3% of RM Infrastructure Income shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. CCLA Investment Management Limited is currently the company's largest shareholder with 9.4% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.2% and 5.7% of the stock.