Simply Wall St

Institutional investors control 64% of Ingles Markets, Incorporated (NASDAQ:IMKT.A) and were rewarded last week after the stock rose 3.5%

Every investor in Ingles Markets, Incorporated (NASDAQ: IMKT.A) should know the most powerful shareholder groups. And the group that holds the biggest slice of the pie are institutions with 64% ownership. In other words, the group faces the maximum upside potential (or downside risk).

And as a result, institutional investors reaped the most rewards after the company’s share price gained 3.5% last week. The one-year shareholder return is currently 23% and last week’s gain was the icing on the cake.

Let’s take a closer look at what different types of shareholders can tell us about Ingles Markets.

Our analysis indicates that IMKT.A is potentially undervalued!

distribution of property
NasdaqGS: IMKT.A Ownership Breakdown November 10, 2022

What does institutional ownership tell us about English markets?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Ingles Markets already has institutions on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the Ingles Markets Earnings History below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS: IMKT.A Earnings and Revenue Growth November 10, 2022

Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. We note that hedge funds have no significant investment in UK markets. The company’s largest shareholder is Robert Ingle, with a 22% stake. In comparison, the second and third shareholders hold approximately 6.3% and 6.1% of the shares.

Upon further inspection, we found that more than half of the company’s shares are held by the top 7 shareholders, suggesting that the interests of the larger shareholders are to some extent balanced by those of the smaller ones.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Ownership of English Markets Insiders

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Insiders appear to hold a large share of Ingles Markets, Incorporated. It has a market capitalization of just $1.8 billion, and insiders hold $403 million worth of shares in their own name. It is quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 12% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information.

I always like to check a revenue growth history. You can also, by accessing this free revenue and profit history chart in this detailed graph.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we help make it simple.

Find out if English markets is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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