Yahoo Finance While individual investors own 27% of Neighbourly Pharmacy Inc. (TSE:NBLY), private equity firms are its largest shareholders with 50% ownership
Key Insights
Neighbourly Pharmacy's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
The largest shareholder of the company is PCP GP, L.P. with a 50% stake
To get a sense of who is truly in control of Neighbourly Pharmacy Inc. (TSE:NBLY), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 50% to be precise, is private equity firms. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 27% ownership in the company.
Let's delve deeper into each type of owner of Neighbourly Pharmacy, beginning with the chart below.
See our latest analysis for Neighbourly Pharmacy
What Does The Institutional Ownership Tell Us About Neighbourly Pharmacy?
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 Neighbourly Pharmacy. 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 Neighbourly Pharmacy's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Neighbourly Pharmacy. PCP GP, L.P. is currently the company's largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. FMR LLC is the second largest shareholder owning 7.5% of common stock, and BMO Asset Management Inc. holds about 1.9% of the company stock.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Neighbourly Pharmacy
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. 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 Neighbourly Pharmacy Inc. insiders own under 1% of the company. It has a market capitalization of just CA$649m, and the board has only CA$1.6m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Neighbourly Pharmacy. 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 Equity Ownership
Private equity firms hold a 50% stake in Neighbourly Pharmacy. 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:
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.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
