Private companies own 44% of Corby Spirit and Wine Limited (TSE:CSW.A) shares but retail investors control 47% of the company
Key Insights
Significant control over Corby Spirit and Wine by retail investors implies that the general public has more power to influence management and governance-related decisions
50% of the business is held by the top 6 shareholders
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
To get a sense of who is truly in control of Corby Spirit and Wine Limited (TSE:CSW.A), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 47% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And private companies on the other hand have a 44% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Corby Spirit and Wine.
Check out our latest analysis for Corby Spirit and Wine
What Does The Institutional Ownership Tell Us About Corby Spirit and Wine?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Corby Spirit and Wine does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Corby Spirit and Wine's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Corby Spirit and Wine. The company's largest shareholder is Pernod Ricard UK Holdings Limited, with ownership of 44%. With 3.4% and 0.9% of the shares outstanding respectively, CI Global Asset Management and March Asset Management, SA are the second and third largest shareholders.
We also observed that the top 6 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.
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 Corby Spirit and Wine
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 Corby Spirit and Wine Limited insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about CA$1.8m worth of stock. This compares to a market capitalization of CA$379m. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Corby Spirit and Wine. 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 44%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Corby Spirit and Wine better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Corby Spirit and Wine (of which 1 is concerning!) you should know about.
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.
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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.
