Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Barloworld's stock price influenced by substantial institutional ownership

Published Oct 22, 2023 04:17AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

Barloworld Limited's stock price has shown a significant correlation to its substantial institutional ownership. The company's three majority stakeholders, Zahid Group, Silchester International Investors LLP, and Public Investment Corporation Limited, together hold a combined 51% stake in the firm. Zahid Group is the largest shareholder with a 19% stake, followed by Silchester International Investors LLP at 18%, and Public Investment Corporation Limited holding 15%.

This considerable institutional investment, supported by vast resources and liquidity, is often seen as a positive aspect as it brings stability and credibility to the company. The risk of a 'crowded trade' is present, a term that refers to an investment scenario where too many investors have taken the same position in a particular asset. In such cases, any unfavorable development could trigger a quick sell-off as investors scramble to limit their losses.

InvestingPro Tips shed light on a few key aspects of Barloworld Limited's financial health and market position. Firstly, the management of Barloworld has been noted for aggressively buying back shares, a move that often signals confidence in the company's future prospects. This could potentially be a factor that has attracted such a high level of institutional investment. Additionally, the company has maintained dividend payments for an impressive 32 consecutive years, indicating a consistent return for shareholders despite market fluctuations. For more insights like these, visit InvestingPro, which offers over a dozen additional tips.

It is important to note that the influence of institutional ownership on Barloworld Limited's stock price is not unique. Many companies with substantial institutional ownership face similar dynamics. This situation underscores the need for investors to carefully consider the potential risks alongside the benefits when investing in companies with significant institutional backing. The company's prominence in the Trading Companies & Distributors industry, as noted by InvestingPro, also plays a role in its appeal to institutional investors.

In conclusion, while the substantial institutional ownership in Barloworld Limited brings stability and credibility, it also carries potential risks. Investors are advised to consider all aspects of the company's performance, financial health, and market position, as provided by resources like InvestingPro, before making investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Barloworld's stock price influenced by substantial institutional ownership

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email