Canada Markets open in 3 hrs 45 mins
  • S&P/TSX

    18,979.01
    -256.08 (-1.33%)
     
  • S&P 500

    3,744.52
    -38.76 (-1.02%)
     
  • DOW

    29,926.94
    -346.93 (-1.15%)
     
  • CAD/USD

    0.7294
    +0.0018 (+0.2444%)
     
  • CRUDE OIL

    88.93
    +0.48 (+0.54%)
     
  • BTC-CAD

    27,395.43
    -413.37 (-1.49%)
     
  • CMC Crypto 200

    454.85
    -8.28 (-1.79%)
     
  • GOLD FUTURES

    1,720.10
    -0.70 (-0.04%)
     
  • RUSSELL 2000

    1,752.51
    -10.18 (-0.58%)
     
  • 10-Yr Bond

    3.8260
    0.0000 (0.00%)
     
  • NASDAQ futures

    11,519.00
    -22.75 (-0.20%)
     
  • VOLATILITY

    30.32
    +1.77 (+6.20%)
     
  • FTSE

    7,005.65
    +8.38 (+0.12%)
     
  • NIKKEI 225

    27,116.11
    -195.19 (-0.71%)
     
  • CAD/EUR

    0.7437
    +0.0011 (+0.15%)
     

What You Need To Know About Hamilton Thorne Ltd.'s (CVE:HTL) Investor Composition

·4 min read

A look at the shareholders of Hamilton Thorne Ltd. (CVE:HTL) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Hamilton Thorne is a smaller company with a market capitalization of CA$230m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Hamilton Thorne.

See our latest analysis for Hamilton Thorne

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Hamilton Thorne?

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.

As you can see, institutional investors have a fair amount of stake in Hamilton Thorne. 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. 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 Hamilton Thorne's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

It would appear that 9.8% of Hamilton Thorne shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. The company's largest shareholder is Daniel Thorne, with ownership of 14%. With 12% and 9.8% of the shares outstanding respectively, FAX Capital Corp. and AWM Investment Company Inc are the second and third largest shareholders. Additionally, the company's CEO David Wolf directly holds 1.8% of the total shares outstanding.

We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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.

Insider Ownership Of Hamilton Thorne

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Hamilton Thorne Ltd.. Insiders have a CA$44m stake in this CA$230m 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 45% stake in Hamilton Thorne. 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.

Private Company Ownership

It seems that Private Companies own 7.7%, of the Hamilton Thorne stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Hamilton Thorne that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.