Evertz Technologies Limited (TSE:ET) insiders have significant skin in the game with 66% ownership

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

Mon, Oct 21, 2024, 6:37 AM 4 min read

Insiders appear to have a vested interest in Evertz Technologies' growth, as seen by their sizeable ownership
A total of 2 investors have a majority stake in the company with 64% ownership
Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in Evertz Technologies Limited (TSE:ET) should be aware of the most powerful shareholder groups. With 66% stake, individual insiders 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).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's take a closer look to see what the different types of shareholders can tell us about Evertz Technologies.

See our latest analysis for Evertz Technologies

ownership-breakdown — TSX:ET Ownership Breakdown October 21st 2024

What Does The Institutional Ownership Tell Us About Evertz 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 Evertz 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. 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 Evertz Technologies' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — TSX:ET Earnings and Revenue Growth October 21st 2024

Evertz Technologies is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Romolo Magarelli with 32% of shares outstanding. With 32% and 1.5% of the shares outstanding respectively, Douglas DeBruin and Pembroke Management Ltd. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Douglas DeBruin is also Chief Administrative Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. 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 Evertz Technologies

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems that insiders own more than half the Evertz Technologies Limited stock. This gives them a lot of power. That means they own CA$610m worth of shares in the CA$927m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Evertz Technologies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Evertz Technologies better, we need to consider many other factors. Be aware that Evertz Technologies is showing 1 warning sign in our investment analysis , you should know about...

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.