In This Article:
In this article, I’m going to take a look at Public Joint-Stock Company UTair Aviation’s (MISX:UTAR) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. Ownership structure of a company has been found to affect share performance over time. Since the same amount of capital coming from an activist institution and a passive mutual fund has different implications on corporate governance, it is a useful exercise to deconstruct UTAR’s shareholder registry.
Check out our latest analysis for UTair Aviation
General Public Ownership
The general public, with a stake of less than 1%, is a relatively minor group of shareholders in UTAR. This size of ownership, while considerably small for a public company, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Another important group of owners for potential investors in UTAR are private companies that hold a stake of 51.04% in UTAR. These are companies that are mainly invested due to their strategic interests or are incentivized by reaping capital gains on investments their shareholdings. This kind of ownership, if predominantly strategic, can give these companies a significant power to affect UTAR’s business strategy. Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.
Next Steps:
A large shareholding of UTAR by the general public could mean higher market liquidity to buy and sell shares for retail investors, and also the potential to have more influence over company policies as a collective. However, ownership structure should not be the only focus of your research when constructing an investment thesis around UTAR. Instead, you should be evaluating company-specific factors such as UTair Aviation’s past track record and financial health. I highly recommend you to complete your research by taking a look at the following:
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Financial Health: Is UTAR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Past Track Record: Has UTAR been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of UTAR’s historicals for more clarity.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.