Institutions own 34% of Sangoma Technologies Corporation (TSE:STC) shares but retail investors control 43% of the company
In This Article:
Key Insights
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Sangoma Technologies' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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A total of 8 investors have a majority stake in the company with 51% ownership
If you want to know who really controls Sangoma Technologies Corporation (TSE:STC), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 43% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And institutions on the other hand have a 34% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's delve deeper into each type of owner of Sangoma Technologies, beginning with the chart below.
Check out our latest analysis for Sangoma Technologies
What Does The Institutional Ownership Tell Us About Sangoma Technologies?
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.
We can see that Sangoma Technologies 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 Sangoma Technologies' historic earnings and revenue below, but keep in mind there's always more to the story.
Sangoma Technologies is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Norman Worthington with 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.9% and 9.6% of the stock. Additionally, the company's CEO Charles Salameh directly holds 0.6% of the total shares outstanding.
We did some more digging and found that 8 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.