If you want to know who really controls Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI), then you’ll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Fortress Transportation and Infrastructure Investors isn’t enormous, but it’s not particularly small either. It has a market capitalization of US$2.0b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Fortress Transportation and Infrastructure Investors.

View our latest analysis for Fortress Transportation and Infrastructure Investors

ownership-breakdown

NYSE:FTAI Ownership Breakdown December 5th 2020

What Does The Institutional Ownership Tell Us About Fortress Transportation and Infrastructure Investors?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Fortress Transportation and Infrastructure Investors already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Fortress Transportation and Infrastructure Investors’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

NYSE:FTAI Earnings and Revenue Growth December 5th 2020

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Fortress Transportation and Infrastructure Investors is not owned by hedge funds. Washington State Investment Board is currently the company’s largest shareholder with 14% of shares outstanding. The second and third largest shareholders are Morgan Stanley Investment Management Inc. and Michigan Department of Treasury, Bureau of Investments, with an equal amount of shares to their name at 4.4%.

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 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.

Insider Ownership Of Fortress Transportation and Infrastructure Investors

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 Fortress Transportation and Infrastructure Investors LLC. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$21m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 46% stake in Fortress Transportation and Infrastructure Investors. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we’ve identified 4 warning signs for Fortress Transportation and Infrastructure Investors (3 are significant) that you should be aware of.

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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This article by Simply Wall St is general in nature. 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.
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