Yahoo Finance Do Institutions Own Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS) Shares?
If you want to know who really controls Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Net 1 UEPS Technologies is a smaller company with a market capitalization of US$306m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Net 1 UEPS Technologies.
View our latest analysis for Net 1 UEPS Technologies
What Does The Institutional Ownership Tell Us About Net 1 UEPS Technologies?
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 Net 1 UEPS Technologies. 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 Net 1 UEPS Technologies, (below). Of course, keep in mind that there are other factors to consider, too.
Net 1 UEPS Technologies is not owned by hedge funds. Our data shows that Value Capital Partners is the largest shareholder with 23% of shares outstanding. International Finance Corporation is the second largest shareholder owning 14% of common stock, and Goldman Sachs Group, Investment Banking and Securities Investments holds about 7.8% of the company stock. Additionally, the company's CEO Christopher Meyer directly holds 1.3% of the total shares outstanding.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Net 1 UEPS Technologies
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.
We can report that insiders do own shares in Net 1 UEPS Technologies, Inc.. As individuals, the insiders collectively own US$9.8m worth of the US$306m company. This shows at least some alignment. 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 36% stake in Net 1 UEPS Technologies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With a stake of 37%, private equity firms could influence the Net 1 UEPS Technologies board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Net 1 UEPS Technologies better, we need to consider many other factors. Take risks for example - Net 1 UEPS Technologies has 1 warning sign we think you should be aware of.
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.
