In This Article:
Key Insights
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The considerable ownership by individual investors in Bombardier indicates that they collectively have a greater say in management and business strategy
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A total of 25 investors have a majority stake in the company with 31% ownership
A look at the shareholders of Bombardier Inc. (TSE:BBD.B) can tell us which group is most powerful. The group holding the most number of shares in the company, around 59% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Individual investors gained the most after market cap touched CA$11b last week, while institutions who own 19% also benefitted.
Let's take a closer look to see what the different types of shareholders can tell us about Bombardier.
Check out our latest analysis for Bombardier
What Does The Institutional Ownership Tell Us About Bombardier?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Bombardier. 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 Bombardier, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Bombardier. Capital Research and Management Company is currently the company's largest shareholder with 4.1% of shares outstanding. With 3.3% and 2.9% of the shares outstanding respectively, The Vanguard Group, Inc. and Laurent Beaudoin are the second and third largest shareholders.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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 Bombardier
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.