Stock Analysis

private companies who own 52% along with institutions invested in Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) saw increase in their holdings value last week

NYSE:LOMA
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Key Insights

If you want to know who really controls Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 52% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies gained the most after market cap touched US$1.1b last week, while institutions who own 29% also benefitted.

Let's delve deeper into each type of owner of Loma Negra Compañía Industrial Argentina Sociedad Anónima, beginning with the chart below.

Check out our latest analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima

ownership-breakdown
NYSE:LOMA Ownership Breakdown November 6th 2024

What Does The Institutional Ownership Tell Us About Loma Negra Compañía Industrial Argentina Sociedad Anónima?

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 Loma Negra Compañía Industrial Argentina Sociedad Anónima. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Loma Negra Compañía Industrial Argentina Sociedad Anónima's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:LOMA Earnings and Revenue Growth November 6th 2024

We note that hedge funds don't have a meaningful investment in Loma Negra Compañía Industrial Argentina Sociedad Anónima. The company's largest shareholder is Participações Morro Vermelho S.A., with ownership of 52%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 6.6% and 5.3% of the shares outstanding respectively, Capital Research and Management Company and Argentine Social Security Administration are the second and third largest shareholders.

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

Insider Ownership Of Loma Negra Compañía Industrial Argentina Sociedad Anónima

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Loma Negra Compañía Industrial Argentina Sociedad Anónima. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 52%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

It appears to us that public companies own 5.2% of Loma Negra Compañía Industrial Argentina Sociedad Anónima. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Loma Negra Compañía Industrial Argentina Sociedad Anónima you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.