Keyera Corp.'s (TSE:KEY) market cap touched CA$10.0b last week, benefiting both individual investors who own 57% as well as institutions
In This Article:
Key Insights
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Significant control over Keyera by individual investors implies that the general public has more power to influence management and governance-related decisions
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A total of 25 investors have a majority stake in the company with 35% ownership
If you want to know who really controls Keyera Corp. (TSE:KEY), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Following a 3.5% increase in the stock price last week, individual investors profited the most, but institutions who own 43% stock also stood to gain from the increase.
Let's delve deeper into each type of owner of Keyera, beginning with the chart below.
Check out our latest analysis for Keyera
What Does The Institutional Ownership Tell Us About Keyera?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Keyera 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. 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 Keyera's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Keyera. The company's largest shareholder is RBC Global Asset Management Inc., with ownership of 6.8%. M&G Investment Management Limited is the second largest shareholder owning 4.8% of common stock, and The Vanguard Group, Inc. holds about 3.9% of the company stock.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.