With 73% ownership of the shares, International Personal Finance plc (LON:IPF) is heavily dominated by institutional owners

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

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.

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.

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Our most recent data indicates that insiders own some shares in International Personal Finance plc. In their own names, insiders own UK£21m worth of stock in the UK£284m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

The general public, who are usually individual investors, hold a 19% stake in International Personal Finance. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

It’s always worth thinking about the different groups who own shares in a company. But to understand International Personal Finance better, we need to consider many other factors. Like risks, for instance. Every company has them, and we’ve spotted 2 warning signs for International Personal Finance (of which 1 can’t be ignored!) you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.