U.S. markets close in 23 minutes
  • S&P 500

    4,305.58
    +8.44 (+0.20%)
     
  • Dow 30

    34,152.78
    +240.34 (+0.71%)
     
  • Nasdaq

    13,106.24
    -21.82 (-0.17%)
     
  • Russell 2000

    2,017.57
    -3.78 (-0.19%)
     
  • Crude Oil

    86.23
    -3.18 (-3.56%)
     
  • Gold

    1,791.40
    -6.70 (-0.37%)
     
  • Silver

    20.11
    -0.16 (-0.77%)
     
  • EUR/USD

    1.0166
    +0.0001 (+0.01%)
     
  • 10-Yr Bond

    2.8240
    +0.0330 (+1.18%)
     
  • GBP/USD

    1.2089
    +0.0030 (+0.25%)
     
  • USD/JPY

    134.2160
    +0.9440 (+0.71%)
     
  • BTC-USD

    23,934.42
    -99.75 (-0.42%)
     
  • CMC Crypto 200

    568.39
    -3.52 (-0.62%)
     
  • FTSE 100

    7,536.06
    +26.91 (+0.36%)
     
  • Nikkei 225

    28,868.91
    -2.87 (-0.01%)
     

What You Need To Know About Keyera Corp.'s (TSE:KEY) Investor Composition

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

The big shareholder groups in Keyera Corp. (TSE:KEY) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

Keyera is a pretty big company. It has a market capitalization of CA$7.6b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Keyera.

View our latest analysis for Keyera

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Keyera?

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.

Keyera already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Keyera's historic earnings and revenue below, but keep in mind there's always more to the story.

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

Hedge funds don't have many shares in Keyera. The company's largest shareholder is RBC Global Asset Management Inc., with ownership of 9.4%. Meanwhile, the second and third largest shareholders, hold 4.1% and 3.4%, of the shares outstanding, respectively.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Keyera

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. 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 most recent data indicates that insiders own less than 1% of Keyera Corp.. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around CA$35m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of Keyera 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Keyera better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Keyera (of which 1 is a bit concerning!) you should know about.

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.

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.