GDI Integrated Facility Services Inc. (TSE:GDI) is definitely on the radar of institutional investors who own 34% of the company
In This Article:
Key Insights
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Significantly high institutional ownership implies GDI Integrated Facility Services' stock price is sensitive to their trading actions
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The top 4 shareholders own 54% of the company
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Insider ownership in GDI Integrated Facility Services is 12%
To get a sense of who is truly in control of GDI Integrated Facility Services Inc. (TSE:GDI), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of GDI Integrated Facility Services.
Check out our latest analysis for GDI Integrated Facility Services
What Does The Institutional Ownership Tell Us About GDI Integrated Facility Services?
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.
GDI Integrated Facility Services already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 GDI Integrated Facility Services' historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in GDI Integrated Facility Services. Birch Hill Equity Partners Management Inc. is currently the largest shareholder, with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 7.9%, of the shares outstanding, respectively. Claude Bigras, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
Our research also brought to light the fact that roughly 54% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.