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Key Insights
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Given the large stake in the stock by institutions, Seneca Foods' stock price might be vulnerable to their trading decisions
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A total of 9 investors have a majority stake in the company with 50% ownership
A look at the shareholders of Seneca Foods Corporation (NASDAQ:SENE.A) can tell us which group is most powerful. The group holding the most number of shares in the company, around 42% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of Seneca Foods.
Check out our latest analysis for Seneca Foods
What Does The Institutional Ownership Tell Us About Seneca Foods?
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.
As you can see, institutional investors have a fair amount of stake in Seneca Foods. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Seneca Foods' earnings history below. Of course, the future is what really matters.
Seneca Foods is not owned by hedge funds. Seneca Foods Corp. Employees' Pension Benefit Plan is currently the company's largest shareholder with 15% of shares outstanding. Dimensional Fund Advisors LP is the second largest shareholder owning 7.5% of common stock, and Kraig Kayser holds about 6.6% of the company stock. Kraig Kayser, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that Paul Palmby, the CEO has 2.7% of the shares allocated to their name.
We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.