Both retail investors who control a good portion of Ballard Power Systems Inc. (TSE:BLDP) along with institutions must be dismayed after last week's 9.8% decrease

Key Insights

• The considerable ownership by retail investors in Ballard Power Systems indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 43% of the company
• Insiders have sold recently

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Every investor in Ballard Power Systems Inc. (TSE:BLDP) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 9.8% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 31% stock also took a hit.

Let's delve deeper into each type of owner of Ballard Power Systems, beginning with the chart below.

Check out our latest analysis for Ballard Power Systems

What Does The Institutional Ownership Tell Us About Ballard Power Systems?

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.

We can see that Ballard Power Systems 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. 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 Ballard Power Systems, (below). Of course, keep in mind that there are other factors to consider, too.

Ballard Power Systems is not owned by hedge funds. The company's largest shareholder is Weichai Power Co., Ltd., with ownership of 15%. With 4.7% and 4.4% of the shares outstanding respectively, BlackRock, Inc. and Legal & General Investment Management Limited are the second and third largest shareholders.

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.

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

Insider Ownership Of Ballard Power Systems

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Ballard Power Systems Inc.. It appears that the board holds about CA$1.7m worth of stock. This compares to a market capitalization of CA$827m. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public -- including retail investors -- own 53% of Ballard Power Systems. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Public Company Ownership

Public companies currently own 15% of Ballard Power Systems stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Ballard Power Systems you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.