Posted on October 11, 2023
- ZIM Integrated Shipping Services’ significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- A total of 25 investors have a majority stake in the company with 36% ownership
- Institutional ownership in ZIM Integrated Shipping Services is 19%
To get a sense of who is truly in control of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), it is important to understand the ownership structure of the business. We can see that individual investors own the lion’s share in the company with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And last week, individual investors endured the biggest losses as the stock fell by 6.5%.
Let’s delve deeper into each type of owner of ZIM Integrated Shipping Services, beginning with the chart below.
Check out our latest analysis for ZIM Integrated Shipping Services
What Does The Institutional Ownership Tell Us About ZIM Integrated Shipping Services?
NYSE:ZIM Ownership Breakdown October 8th 2023
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that ZIM Integrated Shipping Services does have institutional investors; and they hold a good portion of the company’s stock. 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 ZIM Integrated Shipping Services’ earnings history below. Of course, the future is what really matters.
Hedge funds don’t have many shares in ZIM Integrated Shipping Services. Court Investments Limited is currently the company’s largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 2.2% of the shares outstanding, followed by an ownership of 1.8% by the third-largest shareholder. Additionally, the company’s CEO Eliyahu Glickman directly holds 1.3% of the total shares outstanding.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
NYSE:ZIM Earnings and Revenue Growth October 8th 2023
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 ZIM Integrated Shipping Services
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.
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 can report that insiders do own shares in ZIM Integrated Shipping Services Ltd.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$15m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 59% of ZIM Integrated Shipping Services shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Private Company Ownership
We can see that Private Companies own 21%, 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.
