4 days ago
With 69% ownership, BMTC Group Inc. (TSE:GBT) insiders have a lot riding on the company's future
Key Insights
Insiders appear to have a vested interest in BMTC Group's growth, as seen by their sizeable ownership
67% of the company is held by a single shareholder (Yves Groseillers)
Institutional ownership in BMTC Group is 13%
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To get a sense of who is truly in control of BMTC Group Inc. (TSE:GBT), it is important to understand the ownership structure of the business. With 69% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
So, insiders of BMTC Group have a lot at stake and every decision they make on the company's future is important to them from a financial point of view.
In the chart below, we zoom in on the different ownership groups of BMTC Group.
See our latest analysis for BMTC Group
What Does The Institutional Ownership Tell Us About BMTC Group?
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.
BMTC Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 BMTC Group's historic earnings and revenue below, but keep in mind there's always more to the story.
BMTC Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yves Groseillers with 67% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 13% and 0.3% of the shares outstanding respectively, FMR LLC and Jacques Tanguay are the second and third largest shareholders.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of BMTC Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 the majority of BMTC Group Inc.. This means they can collectively make decisions for the company. So they have a CA$294m stake in this CA$428m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 18% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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 BMTC Group (1 is potentially serious) 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
