What You Need To Know About Public Joint Stock Company ALROSA's (MCX:ALRS) Investor Composition

By
Simply Wall St
Published
September 26, 2021
MISX:ALRS
Source: Shutterstock

The big shareholder groups in Public Joint Stock Company ALROSA (MCX:ALRS) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.

ALROSA has a market capitalization of ₽1.0t, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about ALROSA.

View our latest analysis for ALROSA

ownership-breakdown
MISX:ALRS Ownership Breakdown September 27th 2021

What Does The Institutional Ownership Tell Us About ALROSA?

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

As you can see, institutional investors have a fair amount of stake in ALROSA. 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 ALROSA's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
MISX:ALRS Earnings and Revenue Growth September 27th 2021

ALROSA is not owned by hedge funds. The company's largest shareholder is Federal Agency for State Property Management, with ownership of 34%. Sakha (Republic of Yakutia) is the second largest shareholder owning 26% of common stock, and Vontobel Asset Management S.A. holds about 2.0% of the company stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of ALROSA

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Public Joint Stock Company ALROSA. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ₽120m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 16% ownership, the general public have some degree of sway over ALROSA. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand ALROSA better, we need to consider many other factors. For instance, we've identified 2 warning signs for ALROSA (1 doesn't sit too well with us) that you should be aware of.

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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