Insiders hold 56% of Lassonde Industries Inc. (TSE:LAS.A), and they've been buying recently

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

Wed, Oct 16, 2024, 12:57 PM 4 min read

To get a sense of who is truly in control of Lassonde Industries Inc. (TSE:LAS.A), it is important to understand the ownership structure of the business. With 56% 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).

And looking at our data, we can see that insiders have bought shares recently. This could be interpreted as insiders anticipating a rise in stock prices in the near future.

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

See our latest analysis for Lassonde Industries

ownership-breakdown — TSX:LAS.A Ownership Breakdown October 16th 2024

What Does The Institutional Ownership Tell Us About Lassonde Industries?

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 Lassonde Industries. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Lassonde Industries' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — TSX:LAS.A Earnings and Revenue Growth October 16th 2024

Hedge funds don't have many shares in Lassonde Industries. Pierre-Paul Lassonde is currently the company's largest shareholder with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. QV Investors Inc. is the second largest shareholder owning 5.7% of common stock, and FMR LLC holds about 5.1% of the company stock.

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. 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 Lassonde Industries

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. 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.

Our most recent data indicates that insiders own the majority of Lassonde Industries Inc.. This means they can collectively make decisions for the company. That means they own CA$663m worth of shares in the CA$1.2b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Lassonde Industries that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.