With 53% institutional ownership, Intact Financial Corporation (TSE:IFC) is a favorite amongst the big guns
In This Article:
Key Insights
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Institutions' substantial holdings in Intact Financial implies that they have significant influence over the company's share price
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45% of the business is held by the top 25 shareholders
A look at the shareholders of Intact Financial Corporation (TSE:IFC) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of Intact Financial.
Check out our latest analysis for Intact Financial
What Does The Institutional Ownership Tell Us About Intact Financial?
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 Intact Financial 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. 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 Intact Financial's historic earnings and revenue below, but keep in mind there's always more to the story.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Intact Financial is not owned by hedge funds. The company's largest shareholder is Caisse de dép?t et placement du Québec, with ownership of 8.7%. With 4.0% and 3.7% of the shares outstanding respectively, The Vanguard Group, Inc. and FMR LLC 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.