Insiders own 20% of Genesis Land Development Corp. (TSE:GDC) shares but private equity firms control 55% of the company
In This Article:
Key Insights
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Genesis Land Development's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
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55% of the company is held by a single shareholder (Smoothwater Capital Corporation)
Every investor in Genesis Land Development Corp. (TSE:GDC) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 55% to be precise, is private equity firms. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual insiders, on the other hand, account for 20% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's take a closer look to see what the different types of shareholders can tell us about Genesis Land Development.
See our latest analysis for Genesis Land Development
What Does The Institutional Ownership Tell Us About Genesis Land Development?
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.
Genesis Land Development already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Genesis Land Development's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Genesis Land Development. The company's largest shareholder is Smoothwater Capital Corporation, with ownership of 55%. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 20% and 7.6%, of the shares outstanding, respectively.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.