Transcontinental's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 25 shareholders own 45% of the company
Recent purchases by insiders
If you want to know who really controls Transcontinental Inc. (TSE:TCL.A), then you'll have to look at the makeup of its share registry.We can see that individual investors own the lion's share in the company with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And institutions on the other hand have a 33% ownership in the company.Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
In the chart below, we zoom in on the different ownership groups of Transcontinental.
Check out our latest analysis for Transcontinental
TSX:TCL.A Ownership Breakdown November 25th 2024
What Does The Institutional Ownership Tell Us About Transcontinental?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Transcontinental already has institutions on the share registry. Indeed, they own a respectable stake in the company.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.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 Transcontinental, (below). Of course, keep in mind that there are other factors to consider, too.
TSX:TCL.A Earnings and Revenue Growth November 25th 2024
Hedge funds don't have many shares in Transcontinental.Looking at our data, we can see that the largest shareholder is Capinabel Inc. with 15% of shares outstanding.Jarislowsky, Fraser Limited is the second largest shareholder owning 5.6% of common stock, and Caisse de dépôt et placement du Québec holds about 4.2% of the company stock.
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.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments.There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Transcontinental
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.
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.
Our most recent data indicates that insiders own less than 1% of Transcontinental Inc..However, it's possible that insiders might have an indirect interest through a more complex structure.Keep in mind that it's a big company, and the insiders own CA$2.4m worth of shares. The absolute value might be more important than the proportional share.Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 52% of Transcontinental shares. 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 Company Ownership
We can see that Private Companies own 15%, of the shares on issue.It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.Take risks for example - Transcontinental has 2 warning signs we think 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.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.
