U.S. markets close in 1 hour 38 minutes
  • S&P 500

    3,916.99
    -6.69 (-0.17%)
     
  • Dow 30

    31,339.66
    -150.41 (-0.48%)
     
  • Nasdaq

    11,461.89
    +43.74 (+0.38%)
     
  • Russell 2000

    1,790.24
    +15.39 (+0.87%)
     
  • Crude Oil

    112.02
    +2.43 (+2.22%)
     
  • Gold

    1,839.90
    +24.00 (+1.32%)
     
  • Silver

    21.97
    +0.43 (+1.98%)
     
  • EUR/USD

    1.0603
    +0.0138 (+1.31%)
     
  • 10-Yr Bond

    2.8420
    -0.0440 (-1.52%)
     
  • GBP/USD

    1.2507
    +0.0165 (+1.33%)
     
  • USD/JPY

    127.6340
    -0.6630 (-0.52%)
     
  • BTC-USD

    30,227.29
    +1,205.76 (+4.15%)
     
  • CMC Crypto 200

    672.54
    +20.30 (+3.11%)
     
  • FTSE 100

    7,302.74
    -135.35 (-1.82%)
     
  • Nikkei 225

    26,402.84
    -508.36 (-1.89%)
     

What Kind Of Investors Own Most Of Civeo Corporation (NYSE:CVEO)?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

A look at the shareholders of Civeo Corporation (NYSE:CVEO) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of US$293m, Civeo is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Civeo.

View our latest analysis for Civeo

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Civeo?

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 Civeo. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Civeo, (below). Of course, keep in mind that there are other factors to consider, too.

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

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It would appear that 11% of Civeo shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is Horizon Kinetics LLC, with ownership of 24%. The second and third largest shareholders are FMR LLC and Torgerson Family Trust, with an equal amount of shares to their name at 10%. Additionally, the company's CEO Bradley Dodson directly holds 1.1% of the total shares outstanding.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 Civeo

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.

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.

We can see that insiders own shares in Civeo Corporation. As individuals, the insiders collectively own US$8.9m worth of the US$293m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in Civeo. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 13%, of the company's shares. 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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.