FTAI Infrastructure Inc.'s (NASDAQ:FIP) large institutional owners must be happy as stock continues to impress, up 13% over the past week

Key Insights

• Given the large stake in the stock by institutions, FTAI Infrastructure's stock price might be vulnerable to their trading decisions
• The top 11 shareholders own 52% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls FTAI Infrastructure Inc. (NASDAQ:FIP), then you'll have to look at the makeup of its share registry. With 76% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, institutional investors ended up benefitting the most after the company hit US$322m in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 33%.

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

Check out our latest analysis for FTAI Infrastructure

What Does The Institutional Ownership Tell Us About FTAI Infrastructure?

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 FTAI Infrastructure. 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. 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 FTAI Infrastructure's earnings history below. Of course, the future is what really matters.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. FTAI Infrastructure is not owned by hedge funds. Our data shows that Washington State Investment Board is the largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.3% and 5.3% of the stock.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 52% 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of FTAI Infrastructure

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 data suggests that insiders own under 1% of FTAI Infrastructure Inc. in their own names. It has a market capitalization of just US$322m, and the board has only US$2.6m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in FTAI Infrastructure. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand FTAI Infrastructure better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for FTAI Infrastructure you should be aware of, and 2 of them are concerning.

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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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.