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A look at the shareholders of Telkom SA SOC Limited (JSE:TKG) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are state or government with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 30% of the company’s shareholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Telkom SA SOC.
View our latest analysis for Telkom SA SOC
What Does The Institutional Ownership Tell Us About Telkom SA SOC?
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 Telkom SA SOC. 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 Telkom SA SOC, (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 Telkom SA SOC. Looking at our data, we can see that the largest shareholder is South Africa with 42% of shares outstanding. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 2.7% by the third-largest shareholder.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Telkom SA SOC
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.