PyroGenesis Canada Inc.'s (TSE:PYR) 10% gain last week benefited both retail investors who own 56% as well as insiders

Key Insights

• The considerable ownership by retail investors in PyroGenesis Canada indicates that they collectively have a greater say in management and business strategy
• A total of 11 investors have a majority stake in the company with 44% ownership
• Recent purchases by insiders

A look at the shareholders of PyroGenesis Canada Inc. (TSE:PYR) can tell us which group is most powerful. The group holding the most number of shares in the company, around 56% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched CA$159m last week, while insiders who own 44% also benefitted.

In the chart below, we zoom in on the different ownership groups of PyroGenesis Canada.

Check out our latest analysis for PyroGenesis Canada

What Does The Lack Of Institutional Ownership Tell Us About PyroGenesis Canada?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of PyroGenesis Canada, for yourself, below.

PyroGenesis Canada is not owned by hedge funds. With a 43% stake, CEO Photis Pascali is the largest shareholder. Robert Radin is the second largest shareholder owning 0.4% of common stock, and Pierre Carabin holds about 0.2% of the company stock.

On studying our ownership data, we found that 11 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 PyroGenesis Canada

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in PyroGenesis Canada Inc.. Insiders own CA$70m worth of shares in the CA$159m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of PyroGenesis Canada 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:

It's always worth thinking about the different groups who own shares in a company. But to understand PyroGenesis Canada better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with PyroGenesis Canada (including 2 which shouldn't be ignored) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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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.