Yahoo Finance Insiders own 20% of Genesis Land Development Corp. (TSE:GDC) shares but private equity firms control 55% of the company
Key Insights
Genesis Land Development's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
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. And the group that holds the biggest piece of the pie are private equity firms with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual insiders make up 20% 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 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 implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Genesis Land Development's earnings history below. Of course, the future is what really matters.
Genesis Land Development is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Smoothwater Capital Corporation with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. With 20% and 7.1% of the shares outstanding respectively, Mark Mitchell and FMR LLC are the second and third largest shareholders.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Genesis Land Development
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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 insiders own a significant proportion of Genesis Land Development Corp.. Insiders have a CA$31m stake in this CA$154m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 16% stake in Genesis Land Development. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
Private equity firms hold a 55% stake in Genesis Land Development. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Genesis Land Development better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Genesis Land Development .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.
