In This Article:
Key Insights
-
Zip Co's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
-
30% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Zip Co Limited (ASX:ZIP), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).
While individual investors were the group that benefitted the most from last week’s AU$566m market cap gain, institutions too had a 13% share in those profits.
Let's delve deeper into each type of owner of Zip Co, beginning with the chart below.
View our latest analysis for Zip Co
What Does The Institutional Ownership Tell Us About Zip Co?
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.
We can see that Zip Co does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Zip Co's earnings history below. Of course, the future is what really matters.
Zip Co is not owned by hedge funds. State Street Global Advisors, Inc. is currently the largest shareholder, with 7.5% of shares outstanding. For context, the second largest shareholder holds about 5.6% of the shares outstanding, followed by an ownership of 3.7% by the third-largest shareholder. Larry Diamond, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Zip Co
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.