The considerable ownership by individual investors in Perma-Pipe International Holdings indicates that they collectively have a greater say in management and business strategy
A total of 25 investors have a majority stake in the company with 39% ownership
To get a sense of who is truly in control of Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH), it is important to understand the ownership structure of the business. With 60% stake, individual 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).
Institutions, on the other hand, account for 29% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let's take a closer look to see what the different types of shareholders can tell us about Perma-Pipe International Holdings.
NasdaqGM:PPIH Ownership Breakdown October 24th 2024
What Does The Institutional Ownership Tell Us About Perma-Pipe International Holdings?
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.
Perma-Pipe International Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Perma-Pipe International Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGM:PPIH Earnings and Revenue Growth October 24th 2024
Hedge funds don't have many shares in Perma-Pipe International Holdings. Dimensional Fund Advisors LP is currently the company's largest shareholder with 5.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.5% and 4.1% of the stock. In addition, we found that David Mansfield, the CEO has 3.6% of the shares allocated to their name.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Perma-Pipe International Holdings
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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 report that insiders do own shares in Perma-Pipe International Holdings, Inc.. It has a market capitalization of just US$106m, and insiders have US$10m 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 60% of Perma-Pipe International Holdings 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Perma-Pipe International Holdings better, we need to consider many other factors. Take risks for example - Perma-Pipe International Holdings has 1 warning sign we think you should be aware of.
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.
