Retail investors among Keppel Infrastructure Trust's (SGX:A7RU) largest shareholders, saw gain in holdings value after stock jumped 3.2% last week

Key Insights

• The considerable ownership by retail investors in Keppel Infrastructure Trust indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 40% ownership
• Institutional ownership in Keppel Infrastructure Trust is 10%

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Every investor in Keppel Infrastructure Trust (SGX:A7RU) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 60% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors collectively scored the highest last week as the company hit S$3.0b market cap following a 3.2% gain in the stock.

Let's delve deeper into each type of owner of Keppel Infrastructure Trust, beginning with the chart below.

View our latest analysis for Keppel Infrastructure Trust

What Does The Institutional Ownership Tell Us About Keppel Infrastructure Trust?

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 Keppel Infrastructure Trust 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. 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 Keppel Infrastructure Trust, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Keppel Infrastructure Trust. Looking at our data, we can see that the largest shareholder is Keppel Ltd. with 18% of shares outstanding. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 2.5% by the third-largest shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Keppel Infrastructure Trust

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.

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.

Our data suggests that insiders own under 1% of Keppel Infrastructure Trust in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own S$1.0m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 60% of Keppel Infrastructure Trust shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Equity Ownership

With a stake of 12%, private equity firms could influence the Keppel Infrastructure Trust 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.

Public Company Ownership

It appears to us that public companies own 18% of Keppel Infrastructure Trust. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Keppel Infrastructure Trust better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Keppel Infrastructure Trust you should be aware of, and 3 of them are a bit concerning.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.