Yahoo Finance While institutions own 15% of The Keg Royalties Income Fund (TSE:KEG.UN), individual investors are its largest shareholders with 82% ownership
Key Insights
Significant control over Keg Royalties Income Fund by individual investors implies that the general public has more power to influence management and governance-related decisions
A total of 6 investors have a majority stake in the company with 18% ownership
Every investor in The Keg Royalties Income Fund (TSE:KEG.UN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 82% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 15% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's take a closer look to see what the different types of shareholders can tell us about Keg Royalties Income Fund.
View our latest analysis for Keg Royalties Income Fund
What Does The Institutional Ownership Tell Us About Keg Royalties Income Fund?
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 Keg Royalties Income Fund. 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 Keg Royalties Income Fund's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Keg Royalties Income Fund. Our data shows that 1832 Asset Management L.P. is the largest shareholder with 15% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.2% and 0.6%, of the shares outstanding, respectively.
On studying our ownership data, we found that 6 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. 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 Keg Royalties Income Fund
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 less than 1% of The Keg Royalties Income Fund. It has a market capitalization of just CA$261m, and the board has only CA$448k worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 82% of Keg Royalties Income Fund shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Keg Royalties Income Fund that you should be aware of.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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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