While institutions own 27% of Neo Performance Materials Inc. (TSE:NEO), retail investors are its largest shareholders with 50% ownership
In This Article:
Key Insights
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Neo Performance Materials' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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50% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Neo Performance Materials Inc. (TSE:NEO), it is important to understand the ownership structure of the business. With 50% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 27% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's take a closer look to see what the different types of shareholders can tell us about Neo Performance Materials.
View our latest analysis for Neo Performance Materials
What Does The Institutional Ownership Tell Us About Neo Performance Materials?
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.
Neo Performance Materials already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Neo Performance Materials' earnings history below. Of course, the future is what really matters.
Neo Performance Materials is not owned by hedge funds. Hastings Technology Metals Limited is currently the company's largest shareholder with 21% of shares outstanding. Mawer Investment Management Ltd. is the second largest shareholder owning 12% of common stock, and Mackenzie Financial Corporation holds about 4.2% of the company stock. In addition, we found that Rahim Suleman, the CEO has 0.6% of the shares allocated to their name.
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.