Spin Master Corp.'s (TSE:TOY) largest shareholder, Top Key Executive Ronnen Harary sees holdings value fall by 3.2% following recent drop

Key Insights

• Insiders appear to have a vested interest in Spin Master's growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 58% ownership
• 18% of Spin Master is held by Institutions

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A look at the shareholders of Spin Master Corp. (TSE:TOY) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 63% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 3.2% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Spin Master.

See our latest analysis for Spin Master

What Does The Institutional Ownership Tell Us About Spin Master?

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.

As you can see, institutional investors have a fair amount of stake in Spin Master. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Spin Master's historic earnings and revenue below, but keep in mind there's always more to the story.

Spin Master is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Spin Master's case, its Top Key Executive, Ronnen Harary, is the largest shareholder, holding 30% of shares outstanding. Anton Rabie is the second largest shareholder owning 28% of common stock, and Turtle Creek Asset Management Inc. holds about 4.7% of the company stock. Interestingly, the second-largest shareholder, Anton Rabie is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Spin Master

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of Spin Master Corp.. This means they can collectively make decisions for the company. Insiders own CA$1.4b worth of shares in the CA$2.2b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Spin Master. 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 3.5%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Spin Master .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.