This is what the shareholding structure of Pages Jaunes Limitée (TSE: Y) looks like

A look at the shareholders of Yellow Pages Limited (TSE: Y) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.

Yellow Pages is not a large corporation by global standards. It has a market cap of C $ 370 million, which means it wouldn’t get the attention of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s dig deeper into each type of owner to learn more about the Yellow Pages.

Check out our latest analysis for the yellow pages

ownership distribution

What does institutional ownership tell us in the yellow pages?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Yellow Pages already has institutions on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the trajectory of the Yellow Pages’ past earnings (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth

profit and revenue growth

It appears that 50% of Yellow Pages shares are controlled by hedge funds. This is worth noting, as hedge funds are often quite active investors, who can try to influence management. Many want to see value creation (and a higher stock price) in the short to medium term. Looking at our data, we can see that the largest shareholder is Canso Investment Counsel Ltd. with 25% of the shares outstanding. With 20% and 17% of shares outstanding, respectively, Empyrean Capital Partners, LP and GoldenTree Asset Management, LP are the second and third largest shareholders.

After digging a little deeper, we found that the top 3 shareholders collectively control over half of the company’s stock, implying that they have considerable power to influence company decisions.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. While there is some coverage from analysts, the company is likely not widely covered. So he might get more attention, down the track.

Yellow Pages Insider Ownership

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our data suggests that insiders own less than 1% of Yellow Pages Limited in their own name. It appears that the board of directors owns shares worth approximately C $ 2.4 million. This compares to a market cap of C $ 370 million. I generally like to see a more invested board. However, it might be worth checking to see if these insiders have bought.

General public property

With 18% ownership, the general public has some influence over the Yellow Pages. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Take risks for example – The Yellow Pages have 3 warning signs we think you should be aware.

If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last day of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


Source link

Marvin M. Moreno

Leave a Reply

Your email address will not be published. Required fields are marked *