Héroux-Devtek Inc. (TSE:HRX) most popular amongst individual investors who own 41% of the shares, institutions hold 37%
In This Article:
Key Insights
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Héroux-Devtek's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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52% of the business is held by the top 8 shareholders
Every investor in Héroux-Devtek Inc. (TSE:HRX) should be aware of the most powerful shareholder groups. With 41% 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.
Institutions, on the other hand, account for 37% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
In the chart below, we zoom in on the different ownership groups of Héroux-Devtek.
Check out our latest analysis for Héroux-Devtek
What Does The Institutional Ownership Tell Us About Héroux-Devtek?
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.
We can see that Héroux-Devtek does have institutional investors; and they hold a good portion of the company's stock. 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 Héroux-Devtek, (below). Of course, keep in mind that there are other factors to consider, too.
Héroux-Devtek is not owned by hedge funds. Caisse de dép?t et placement du Québec is currently the largest shareholder, with 14% of shares outstanding. Fonds de solidarité FTQ is the second largest shareholder owning 11% of common stock, and Gilles Labbe holds about 8.8% of the company stock. Gilles Labbe, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Furthermore, CEO Martin Brassard is the owner of 0.8% of the company's shares.
On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.