Tidewater Midstream and Infrastructure Ltd.'s (TSE:TWM) largest shareholders are retail investors who were rewarded as market cap surged CA$26m last week
Significant control over Tidewater Midstream and Infrastructure by retail investors implies that the general public has more power to influence management and governance-related decisions
42% of the business is held by the top 25 shareholders
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
Every investor in Tidewater Midstream and Infrastructure Ltd. (TSE:TWM) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Clearly, retail investors benefitted the most after the company's market cap rose by CA$26m last week.
Let's delve deeper into each type of owner of Tidewater Midstream and Infrastructure, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Tidewater Midstream and Infrastructure?
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 Tidewater Midstream and Infrastructure. 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 Tidewater Midstream and Infrastructure's earnings history below. Of course, the future is what really matters.
TSX:TWM Earnings and Revenue Growth October 17th 2024
It would appear that 10% of Tidewater Midstream and Infrastructure shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Birch Hill Equity Partners Management Inc. is currently the largest shareholder, with 22% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 3.9% by the third-largest shareholder. Thomas Dea, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Tidewater Midstream and Infrastructure
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in Tidewater Midstream and Infrastructure Ltd.. As individuals, the insiders collectively own CA$6.0m worth of the CA$142m company. 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 -- including retail investors -- own 58% of Tidewater Midstream and Infrastructure. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Private Equity Ownership
With a stake of 22%, private equity firms could influence the Tidewater Midstream and Infrastructure board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Tidewater Midstream and Infrastructure better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Tidewater Midstream and Infrastructure .
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.
