Yahoo Finance Owning 38% shares,institutional owners seem interested in Integrated Rail and Resources Acquisition Corp. (NYSE:IRRX),
Key Insights
Institutions' substantial holdings in Integrated Rail and Resources Acquisition implies that they have significant influence over the company's share price
54% of the business is held by the top 4 shareholders
Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
Every investor in Integrated Rail and Resources Acquisition Corp. (NYSE:IRRX) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 38% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
In the chart below, we zoom in on the different ownership groups of Integrated Rail and Resources Acquisition.
Check out our latest analysis for Integrated Rail and Resources Acquisition
What Does The Institutional Ownership Tell Us About Integrated Rail and Resources Acquisition?
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 Integrated Rail and Resources Acquisition. 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 Integrated Rail and Resources Acquisition's earnings history below. Of course, the future is what really matters.
It would appear that 11% of Integrated Rail and Resources Acquisition shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Dhip Natural Resources Investments, Llc is currently the company's largest shareholder with 35% of shares outstanding. With 11% and 4.3% of the shares outstanding respectively, Context Capital Management LLC and Wolverine Asset Management, LLC are the second and third largest shareholders.
On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Integrated Rail and Resources Acquisition
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.
Our data suggests that insiders own under 1% of Integrated Rail and Resources Acquisition Corp. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about US$835k worth of stock. This compares to a market capitalization of US$136m. 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 16% stake in Integrated Rail and Resources Acquisition. 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
It seems that Private Companies own 35%, of the Integrated Rail and Resources Acquisition 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:
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 3 warning signs for Integrated Rail and Resources Acquisition you should know about.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
