Private companies account for 46% of African Rainbow Minerals Limited's (JSE:ARI) ownership, while institutions account for 37%

Yahoo

09-05-2025

The considerable ownership by private companies in African Rainbow Minerals indicates that they collectively have a greater say in management and business strategy
The top 2 shareholders own 56% of the company
Institutions own 37% of African Rainbow Minerals
We've discovered 2 warning signs about African Rainbow Minerals. View them for free.
If you want to know who really controls African Rainbow Minerals Limited (JSE:ARI), then you'll have to look at the makeup of its share registry. With 46% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, institutions make up 37% of the company's shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
In the chart below, we zoom in on the different ownership groups of African Rainbow Minerals.
View our latest analysis for African Rainbow Minerals
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.
We can see that African Rainbow Minerals does have institutional investors; and they hold a good portion of the company's stock. 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 African Rainbow Minerals' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in African Rainbow Minerals. Looking at our data, we can see that the largest shareholder is African Rainbow Minerals & Exploration Investments (Pty) Ltd. with 46% of shares outstanding. With 11% and 5.3% of the shares outstanding respectively, Public Investment Corporation Limited and Coronation Fund Managers Limited are the second and third largest shareholders.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.
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.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of African Rainbow Minerals Limited in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own R217m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over African Rainbow Minerals. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
We can see that Private Companies own 46%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
It's always worth thinking about the different groups who own shares in a company. But to understand African Rainbow Minerals better, we need to consider many other factors. For example, we've discovered 2 warning signs for African Rainbow Minerals that you should be aware of before investing here.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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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