Insiders hold 56% of Lassonde Industries Inc. (TSE:LAS.A), and they've been buying recently
Key Insights
Significant insider control over Lassonde Industries implies vested interests in company growth
The largest shareholder of the company is Pierre-Paul Lassonde with a 55% stake
A look at the shareholders of Lassonde Industries Inc. (TSE:LAS.A) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
A quick look at our data suggests that insiders have been buying shares in the company recently. This could signal that stock prices could go up and insiders are here for it.
Let's delve deeper into each type of owner of Lassonde Industries, beginning with the chart below.
See our latest analysis for Lassonde Industries
What Does The Institutional Ownership Tell Us About Lassonde Industries?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Lassonde Industries does have institutional investors; and they hold a good portion of the company's stock. 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 Lassonde Industries' earnings history below. Of course, the future is what really matters.
Lassonde Industries is not owned by hedge funds. Pierre-Paul Lassonde is currently the largest shareholder, with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. With 6.9% and 4.5% of the shares outstanding respectively, QV Investors Inc. and Tweedy, Browne Company LLC are the second and third largest shareholders.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Lassonde Industries
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders own more than half of Lassonde Industries Inc.. This gives them effective control of the company. Given it has a market cap of CA$834m, that means they have CA$463m worth of shares. 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
The general public, who are usually individual investors, hold a 25% stake in Lassonde Industries. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Lassonde Industries better, we need to consider many other factors. For instance, we've identified 3 warning signs for Lassonde Industries (1 makes us a bit uncomfortable) that you should be aware of.
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.
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