While private companies own 37% of StorageVault Canada Inc. (TSE:SVI), retail investors are its largest shareholders with 42% ownership

Key Insights

  • Significant control over StorageVault Canada by retail investors implies that the general public has more power to influence management and governance-related decisions

  • The top 8 shareholders own 50% of the company

  • Insiders have sold recently

To get a sense of who is truly in control of StorageVault Canada Inc. (TSE:SVI), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies, on the other hand, account for 37% of the company’s stockholders.

In the chart below, we zoom in on the different ownership groups of StorageVault Canada.

See our latest analysis for StorageVault Canada

ownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About StorageVault Canada?

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.

As you can see, institutional investors have a fair amount of stake in StorageVault Canada. 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 StorageVault Canada’s earnings history below. Of course, the future is what really matters.

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

earnings-and-revenue-growth

Hedge funds don’t have many shares in StorageVault Canada. Access Self Storage Inc. is currently the company’s largest shareholder with 37% of shares outstanding. With 3.3% and 2.5% of the shares outstanding respectively, T. Rowe Price Group, Inc. and BMO Asset Management Corp. are the second and third largest shareholders.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Story continues

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of StorageVault Canada

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.

We can see that insiders own shares in StorageVault Canada Inc.. The insiders have a meaningful stake worth CA$25m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public– including retail investors — own 42% stake in the company, and hence can’t easily be ignored. 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

We can see that Private Companies own 37%, of the shares on issue. 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:

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 1 warning sign for StorageVault Canada you should be aware of.

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.

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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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