Yahoo Finance The Keg Royalties Income Fund's (TSE:KEG.UN) top owners are individual investors with 85% stake, while 15% is held by institutions
Key Insights
Keg Royalties Income Fund's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
15% of the business is held by the top 5 shareholders
Every investor in The Keg Royalties Income Fund (TSE:KEG.UN) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 85% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Institutions, on the other hand, account for 15% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Keg Royalties Income Fund, beginning with the chart below.
View our latest analysis for Keg Royalties Income Fund
What Does The Institutional Ownership Tell Us About Keg Royalties Income Fund?
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.
Keg Royalties Income Fund 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 Keg Royalties Income Fund's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Keg Royalties Income Fund. Our data shows that 1832 Asset Management L.P. is the largest shareholder with 15% of shares outstanding. Timelo Investment Management Inc. is the second largest shareholder owning 0.1% of common stock, and Christopher Woodward holds about 0.08% of the company stock. Christopher Woodward, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
On studying our ownership data, we found that 5 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Keg Royalties Income Fund
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.
Our data suggests that insiders own under 1% of The Keg Royalties Income Fund in their own names. It appears that the board holds about CA$228k worth of stock. This compares to a market capitalization of CA$246m. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 85% of Keg Royalties Income Fund shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
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 Keg Royalties Income Fund that you should be aware of.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
