Individual investors among International Petroleum Corporation's (TSE:IPCO) largest shareholders, saw gain in holdings value after stock jumped 6.2% last week

By
Simply Wall St
Published
April 09, 2022
TSX:IPCO
Source: Shutterstock

If you want to know who really controls International Petroleum Corporation (TSE:IPCO), 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 individual investors with 44% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, individual investors benefitted the most after the company's market cap rose by CA$112m last week.

Let's delve deeper into each type of owner of International Petroleum, beginning with the chart below.

View our latest analysis for International Petroleum

ownership-breakdown
TSX:IPCO Ownership Breakdown April 9th 2022

What Does The Institutional Ownership Tell Us About International Petroleum?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in International Petroleum. 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. 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 International Petroleum, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSX:IPCO Earnings and Revenue Growth April 9th 2022

We note that hedge funds don't have a meaningful investment in International Petroleum. Nemesia S.À R.L. is currently the company's largest shareholder with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.1% and 3.4% of the stock.

A closer look at our ownership figures suggests that the top 16 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of International Petroleum

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in International Petroleum Corporation. This is a big company, so it is good to see this level of alignment. Insiders own CA$45m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over International Petroleum. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 27%, of the International Petroleum stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand International Petroleum better, we need to consider many other factors. Be aware that International Petroleum is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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