Yahoo Finance 5N Plus Inc.'s (TSE:VNP) market cap touched CA$530m last week, benefiting both individual investors who own 52% as well as institutions
Key Insights
The considerable ownership by individual investors in 5N Plus indicates that they collectively have a greater say in management and business strategy
The top 25 shareholders own 48% of the company
If you want to know who really controls 5N Plus Inc. (TSE:VNP), then you'll have to look at the makeup of its share registry. With 52% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual investors gained the most after market cap touched CA$530m last week, while institutions who own 44% also benefitted.
Let's delve deeper into each type of owner of 5N Plus, beginning with the chart below.
Check out our latest analysis for 5N Plus
What Does The Institutional Ownership Tell Us About 5N Plus?
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.
5N Plus already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 5N Plus' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in 5N Plus. Our data shows that Caisse de dépôt et placement du Québec is the largest shareholder with 18% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 5.1%, of the shares outstanding, respectively.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of 5N Plus
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can report that insiders do own shares in 5N Plus Inc.. As individuals, the insiders collectively own CA$26m worth of the CA$530m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a substantial 52% stake in 5N Plus, suggesting it is a fairly popular stock. 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 5N Plus better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with 5N Plus (including 1 which is a bit unpleasant) .
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.
