Every investor in IBI Group Inc. (
TSE:IBG
) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders,baked brie with crescent rolls and honey and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
IBI Group is not a large company by global standards. It has a market capitalization of CA$270m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about IBI Group.
Check out our latest analysis for IBI Group
ownership-breakdown
What Does The Institutional Ownership Tell Us About IBI Group?
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.
IBI Group 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of IBI Group, (below). Of course, keep in mind that there are other factors to consider, too.
earnings-and-revenue-growth
We note that hedge funds don't have a meaningful investment in IBI Group. IBI Group Investment Partnership is currently the company's largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 10.0% of the shares outstanding, followed by an ownership of 8.7% by the third-largest shareholder. Additionally, the company's CEO Scott Stewart directly holds 1.0% of the total shares outstanding.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Story continues
Insider Ownership Of IBI Group
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 IBI Group Inc.. In their own names, insiders own CA$4.3m worth of stock in the CA$270m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking
if those insiders have been selling.
General Public Ownership
The general public holds a 41% stake in IBI Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
We can see that Private Companies own 19%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand IBI Group better, we need to consider many other factors. For example, we've discovered
1 warning sign for IBI Group
that you should be aware of before investing here.
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.
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.
Have feedback on this article? Concerned about the content?
Get in touch
with us directly.
Alternatively, email
.
View comments