Transcontinental Inc.'s (TSE:TCL.A) largest shareholders are retail investors with 59% ownership, institutions own 26%
In This Article:
Key Insights
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Transcontinental's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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The top 25 shareholders own 39% of the company
To get a sense of who is truly in control of Transcontinental Inc. (TSE:TCL.A), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 26% of the company’s shareholders. 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 Transcontinental.
Check out our latest analysis for Transcontinental
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.
We can see that Transcontinental does have institutional investors; and they hold a good portion of the company's stock. 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 Transcontinental's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Transcontinental. Our data shows that Capinabel Inc. is the largest shareholder with 15% of shares outstanding. With 5.5% and 3.3% of the shares outstanding respectively, Jarislowsky, Fraser Limited and Dimensional Fund Advisors LP are the second and third largest shareholders.
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.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Transcontinental
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.