Yahoo Finance While hedge funds own 19% of Spartan Delta Corp. (TSE:SDE), individual investors are its largest shareholders with 49% ownership
Key Insights
The considerable ownership by individual investors in Spartan Delta indicates that they collectively have a greater say in management and business strategy
49% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Spartan Delta Corp. (TSE:SDE), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And hedge funds on the other hand have a 19% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Spartan Delta.
Check out our latest analysis for Spartan Delta
What Does The Institutional Ownership Tell Us About Spartan Delta?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Spartan Delta 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 Spartan Delta's earnings history below. Of course, the future is what really matters.
It looks like hedge funds own 19% of Spartan Delta shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is GMT Capital Corp., with ownership of 19%. With 5.3% and 4.2% of the shares outstanding respectively, Areti Energy S.A. and Richard McHardy are the second and third largest shareholders. Richard McHardy, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Furthermore, CEO Fotis Kalantzis is the owner of 4.2% of the company's shares.
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.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Spartan Delta
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own a reasonable proportion of Spartan Delta Corp.. Insiders own CA$446m worth of shares in the CA$2.6b company. That's quite meaningful. 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
With a 49% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Spartan Delta. 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
Our data indicates that Private Companies hold 5.3%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Spartan Delta you should be aware of, and 1 of them can't be ignored.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
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