With 61% ownership, BBGI Global Infrastructure S.A. (LON:BBGI) boasts of strong institutional backing
In This Article:
Key Insights
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Significantly high institutional ownership implies BBGI Global Infrastructure's stock price is sensitive to their trading actions
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A total of 12 investors have a majority stake in the company with 50% ownership
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Recent purchases by insiders
To get a sense of who is truly in control of BBGI Global Infrastructure S.A. (LON:BBGI), it is important to understand the ownership structure of the business. With 61% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of BBGI Global Infrastructure.
Check out our latest analysis for BBGI Global Infrastructure
What Does The Institutional Ownership Tell Us About BBGI Global Infrastructure?
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 BBGI Global Infrastructure does have institutional investors; and they hold a good portion of the company's stock. 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 BBGI Global Infrastructure, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in BBGI Global Infrastructure. The company's largest shareholder is Schroder Investment Management Limited, with ownership of 10%. With 8.3% and 6.7% of the shares outstanding respectively, M&G Investment Management Limited and Investec Wealth & Investment Limited are the second and third largest shareholders.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.