JSE NPN

Naspers Limited is a South African multinational consumer Internet company headquartered in Cape Town. Its principal operations include online classified advertising, fintech, payments, and food delivery.

Get to know your JSE companies: NASPERS LTD (JSE: NPN)

How Many Naspers Limited (JSE:NPN) Shares Do Institutions Own?

If you want to know who really controls Naspers Limited (JSE:NPN), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Naspers is a pretty big company. It has a market capitalization of R1.5t. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Naspers.

ownership-breakdown
JSE:NPN Ownership Breakdown April 19th 2021

What Does The Institutional Ownership Tell Us About Naspers?

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.

Naspers already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Naspers’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
JSE:NPN Earnings and Revenue Growth April 19th 2021

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don’t have many shares in Naspers. Public Investment Corporation Limited is currently the largest shareholder, with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.4% and 2.4%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Naspers

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Shareholders would probably be interested to learn that insiders own shares in Naspers Limited. The insiders have a meaningful stake worth R25b. I sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public holds a 36% stake in Naspers. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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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