Key Insights
The high level of institutional ownership suggests that Ardmore Shipping’s share price is sensitive to their trading actions.
A total of 13 investors hold majority stakes in the company, with 51% ownership.
Combining analyst forecast data with ownership research can help you get a better gauge of a company’s future performance.
A look at the shareholders of Ardmore Shipping Corporation (NYSE:ASC) can tell us which group is most powerful. And the group with the largest shareholding are institutional investors, with 67% ownership — meaning they are the group that stands to gain the most if the share price rises (and lose the most if the share price falls).
Because institutional investors have vast amounts of capital and liquidity, their investment decisions tend to have a large influence, especially over retail investors. Therefore, a significant portion of institutional capital invested in a company usually represents a strong expression of confidence in the company’s future.
In the chart below, we zoom in on the different ownership groups for Ardmore Shipping.
View our latest analysis for Ardmore Shipping
Ownership Breakdown
What does institutional ownership tell us about Ardmore Shipping?
Institutional investors commonly compare their own company’s returns to the returns of a commonly tracked index, so they typically consider buying large companies that are included in the relevant benchmark index.
We can see that Ardmore Shipping has institutional investors who hold a significant percentage of the company’s shares. This may suggest that the company has a certain degree of credibility in the investment community. However, it’s best to be careful about relying on the approval of institutional investors – they get it wrong sometimes, too. If multiple institutions change their view on a stock at the same time, you could see the share price drop sharply. It’s therefore worth checking Ardmore Shipping’s earnings history below. Of course, it’s the future that really matters.
Revenue and income growth
Institutional investors own more than 50% of the company’s shares and, together, could strongly influence board decisions. Ardmore Shipping is not owned by hedge funds. Our data shows that Dimensional Fund Advisors LP is the largest shareholder with 6.6% of shares outstanding. BlackRock Inc. and Scorpio Holdings Inc. are the second and third largest shareholders, holding 6.0% and 5.5% of the shares outstanding respectively.
A look at the shareholder registry shows that 51% of the ownership is controlled by the top 13 shareholders, meaning no single shareholder holds majority ownership rights.
The story continues
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to know which way the wind is blowing. There are a fair number of analysts covering the stock, so you can look up forecast growth fairly easily.
Insider Ownership of Ardmore Shipping
The definition of a company insider can be subjective and varies between jurisdictions. Our data reflects individual insiders, and includes, at a minimum, directors. Company management should report to the board of directors, which should represent the interests of shareholders. Notably, top-level management may themselves sit on the board.
Insider ownership can be a positive if it signals management are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company, which can be a negative in some circumstances.
We can report that insiders own shares in Ardmore Shipping Corp. They own US$39m worth of shares in their own names, in a company with a market capitalization of US$818m. It’s good to see some insider investment, but it might be worth checking if insiders have actually been buying.
General public property
The general public, usually retail investors, own 18% of Ardmore Shipping Co. Ltd. Although this size of ownership may not be enough to tilt policy decisions in their favor, they can still collectively influence company policy.
Private Ownership
It appears that private companies own 10% of Ardmore Shipping shares. Private companies may be related parties – insiders may have an interest in public companies through holdings in private companies, rather than in their own capacity as individuals. It’s difficult to draw any broad strokes conclusions, but it’s worth noting as an area for further investigation.
Next steps:
It’s very interesting to look at who exactly owns a company. But to gain true insight, you need to consider other information as well. Consider, for example, the ever-present threat of investment risk. We’ve identified 2 warning signs with Ardmore Shipping (at least 1 which is a bit unpleasant) and understanding these should be part of your investment process.
But it will ultimately be the future, not the past, that will determine how successful the owners of this business will be, so we therefore recommend you take a look at this free report which shows whether analysts are predicting a brighter future.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
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