Eguana Technologies Inc.'s (CVE:EGT) largest shareholders are individual investors who were rewarded as market cap surged CA$34m last week
Simply Wall St
5 min read
If you want to know who really controls Eguana Technologies Inc. (CVE:EGT), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, individual investors collectively scored the highest last week as the company hit CA$177m market cap following a 24% gain in the stock.
In the chart below, we zoom in on the different ownership groups of Eguana Technologies.
What Does The Institutional Ownership Tell Us About Eguana Technologies?
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.
As you can see, institutional investors have a fair amount of stake in Eguana Technologies. 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 Eguana Technologies, (below). Of course, keep in mind that there are other factors to consider, too.
TSXV:EGT Earnings and Revenue Growth September 18th 2022
We note that hedge funds don't have a meaningful investment in Eguana Technologies. The company's largest shareholder is DHCT II Luxembourg S.a.r.l., with ownership of 23%. With 8.5% and 6.9% of the shares outstanding respectively, ITOCHU Corporation and FMR LLC are the second and third largest shareholders. Furthermore, CEO Justin Holland is the owner of 1.1% of the company's shares.
A deeper look at our ownership data shows that the top 17 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Eguana Technologies
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in Eguana Technologies Inc.. It has a market capitalization of just CA$177m, and insiders have CA$4.5m worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 57% of Eguana Technologies shares. 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.
Private Company Ownership
Our data indicates that Private Companies hold 23%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Public Company Ownership
It appears to us that public companies own 8.5% of Eguana Technologies. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Eguana Technologies better, we need to consider many other factors. For example, we've discovered 2 warning signs for Eguana Technologies (1 doesn't sit too well with us!) that you should be aware of before investing here.
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.
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