In This Article:
Key Insights
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The considerable ownership by individual investors in ZIM Integrated Shipping Services indicates that they collectively have a greater say in management and business strategy
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The top 25 shareholders own 36% of the company
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Institutional ownership in ZIM Integrated Shipping Services is 47%
Every investor in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While institutions, who own 47% shares weren’t spared from last week’s US$90m market cap drop, individual investors as a group suffered the maximum losses
In the chart below, we zoom in on the different ownership groups of ZIM Integrated Shipping Services.
Check out our latest analysis for ZIM Integrated Shipping Services
What Does The Institutional Ownership Tell Us About ZIM Integrated Shipping Services?
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.
ZIM Integrated Shipping Services already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 ZIM Integrated Shipping Services' historic earnings and revenue below, but keep in mind there's always more to the story.
ZIM Integrated Shipping Services is not owned by hedge funds. The company's largest shareholder is D. E. Shaw & Co., L.P., with ownership of 4.0%. In comparison, the second and third largest shareholders hold about 3.2% and 2.4% of the stock. Furthermore, CEO Eliyahu Glickman is the owner of 1.1% of the company's shares.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.