Yahoo Finance With a 84% stake, TWC Enterprises Limited (TSE:TWC) insiders have a lot riding on the company
Key Insights
Insiders appear to have a vested interest in TWC Enterprises' growth, as seen by their sizeable ownership
The largest shareholder of the company is Kuldip Sahi with a 80% stake
Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of TWC Enterprises Limited (TSE:TWC) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 84% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
So it follows, every decision made by insiders of TWC Enterprises regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of TWC Enterprises.
See our latest analysis for TWC Enterprises
What Does The Institutional Ownership Tell Us About TWC Enterprises?
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.
Since institutions own only a small portion of TWC Enterprises, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds don't have many shares in TWC Enterprises. The company's CEO Kuldip Sahi is the largest shareholder with 80% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. Meanwhile, the second and third largest shareholders, hold 2.3% and 1.2%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Patrick Brigham is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of TWC Enterprises
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems that insiders own more than half the TWC Enterprises Limited stock. This gives them a lot of power. So they have a CA$346m stake in this CA$413m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand TWC Enterprises better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with TWC Enterprises .
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
