Institutions along with individual investors who hold considerable shares inNFI Group Inc. (TSE:NFI) come under pressure; lose 4.1% of holdings value
In This Article:
Key Insights
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NFI Group's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 25 investors have a majority stake in the company with 48% ownership
To get a sense of who is truly in control of NFI Group Inc. (TSE:NFI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 50% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While institutions who own 24% came under pressure after market cap dropped to CA$2.0b last week,individual investors took the most losses.
Let's delve deeper into each type of owner of NFI Group, beginning with the chart below.
Check out our latest analysis for NFI Group
What Does The Institutional Ownership Tell Us About NFI Group?
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 NFI Group 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of NFI Group, (below). Of course, keep in mind that there are other factors to consider, too.
It would appear that 20% of NFI Group shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Coliseum Capital Management, LLC is currently the largest shareholder, with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.9% and 5.5% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.