Institutions own 43% of Auckland International Airport Limited (NZSE:AIA) shares but retail investors control 46% of the company
In This Article:
Key Insights
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Auckland International Airport's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 25 investors have a majority stake in the company with 50% ownership
If you want to know who really controls Auckland International Airport Limited (NZSE:AIA), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And institutions on the other hand have a 43% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let's delve deeper into each type of owner of Auckland International Airport, beginning with the chart below.
Check out our latest analysis for Auckland International Airport
What Does The Institutional Ownership Tell Us About Auckland International Airport?
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.
As you can see, institutional investors have a fair amount of stake in Auckland International Airport. 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. 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 Auckland International Airport's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Auckland International Airport. Auckland Council is currently the company's largest shareholder with 11% of shares outstanding. For context, the second largest shareholder holds about 8.1% of the shares outstanding, followed by an ownership of 6.1% by the third-largest shareholder.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.