Spark New Zealand Limited (NZSE:SPK) most popular amongst retail investors who own 52% of the shares, institutions hold 48%

editorial-team@simplywallst.com (Simply Wall St)

Wed, Mar 12, 2025, 6:44 PM 4 min read

To get a sense of who is truly in control of Spark New Zealand Limited (NZSE:SPK), it is important to understand the ownership structure of the business. With 52% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutions on the other hand have a 48% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's delve deeper into each type of owner of Spark New Zealand, beginning with the chart below.

Check out our latest analysis for Spark New Zealand

ownership-breakdown — NZSE:SPK Ownership Breakdown March 13th 2025

What Does The Institutional Ownership Tell Us About Spark New Zealand?

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.

Spark New Zealand 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Spark New Zealand's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — NZSE:SPK Earnings and Revenue Growth March 13th 2025

We note that hedge funds don't have a meaningful investment in Spark New Zealand. Our data shows that JPMorgan Chase & Co, Private Banking and Investment Banking Investments is the largest shareholder with 8.2% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.9% and 5.2% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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

Insider Ownership Of Spark New Zealand

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our data suggests that insiders own under 1% of Spark New Zealand Limited 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 NZ$3.6m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 52% of Spark New Zealand. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Spark New Zealand better, we need to consider many other factors. Be aware that Spark New Zealand is showing 4 warning signs in our investment analysis , and 1 of those is 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.