Could the ownership structure of Ingenia Communities Group (ASX:INA) tell us anything useful?

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The large shareholder groups of Ingenia Communities Group (ASX:INA) have power over the company. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

Ingenia Communities Group has a market capitalization of A$1.9 billion, so we expect some institutional investors to have taken notice of the stock. Our analysis of company ownership, below, shows that institutional investors have bought the company. Let’s take a closer look at what different types of shareholders can tell us about Ingenia Communities Group.

Check out our latest analysis for Ingenia Communities Group

distribution of property

What does institutional ownership tell us about Ingenia Communities Group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Ingenia Communities Group already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Ingenia Communities Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth

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Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. Ingenia Communities Group is not owned by hedge funds. Our data shows that Sun Communities Operating Limited Partnership is the largest shareholder with 10% of the shares outstanding. With 6.2% and 6.1% of the shares outstanding, respectively, Cohen & Steers Capital Management, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders.

A closer look at our ownership figures suggests that the top 25 shareholders hold a combined ownership of 50%, implying that no single shareholder has a majority.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Owned by Ingenia Communities Group Insiders

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our information suggests that Ingenia Communities Group insiders own less than 1% of the company. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders hold A$14 million worth of shares. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.

General public property

With a 45% stake, the general public, consisting mainly of individual investors, has some influence over Ingenia Communities Group. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Ingenia Communities Group, we need to consider many other factors. For example, we have identified 2 warning signs for Ingenia Communities Group of which you should be aware.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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