Kaspi.kz Joint Stock Company (LON:KSPI) insiders, who hold 48% of the firm would be disappointed by the recent pullback

editorial-team@simplywallst.com (Simply Wall St)

Sun, Oct 8, 2023, 1:58 AM 4 min read

Key Insights

Kaspi.kz's significant insider ownership suggests inherent interests in company's expansion
A total of 2 investors have a majority stake in the company with 53% ownership
Institutional ownership in Kaspi.kz is 11%

A look at the shareholders of Kaspi.kz Joint Stock Company (LON:KSPI) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 48% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.0% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Kaspi.kz.

See our latest analysis for Kaspi.kz

ownership-breakdown — LSE:KSPI Ownership Breakdown October 8th 2023

What Does The Institutional Ownership Tell Us About Kaspi.kz?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Kaspi.kz 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 Kaspi.kz's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — LSE:KSPI Earnings and Revenue Growth October 8th 2023

Hedge funds don't have many shares in Kaspi.kz. The company's largest shareholder is Baring Vostok Capital Partners Limited, with ownership of 29%. With 25% and 23% of the shares outstanding respectively, Mikheil Lomtadze and V. Kim are the second and third largest shareholders. Mikheil Lomtadze, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Kaspi.kz

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own a reasonable proportion of Kaspi.kz Joint Stock Company. It has a market capitalization of just US$17b, and insiders have US$8.4b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 12% stake in Kaspi.kz. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 29%, private equity firms could influence the Kaspi.kz board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Kaspi.kz you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.