How Much Of Fiera Capital Corporation (TSE:FSZ) Do Institutions Own?

By
Simply Wall St
Published
August 18, 2021
TSX:FSZ
Source: Shutterstock

A look at the shareholders of Fiera Capital Corporation (TSE:FSZ) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of CA$1.1b, Fiera Capital is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Fiera Capital.

View our latest analysis for Fiera Capital

ownership-breakdown
TSX:FSZ Ownership Breakdown August 19th 2021

What Does The Institutional Ownership Tell Us About Fiera Capital?

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.

Fiera Capital already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Fiera Capital's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
TSX:FSZ Earnings and Revenue Growth August 19th 2021

Fiera Capital is not owned by hedge funds. Fiera Capital Inc. is currently the largest shareholder, with 24% of shares outstanding. With 10% and 3.7% of the shares outstanding respectively, Natixis Investment Managers S.A. and Nitin Kumbhani are the second and third largest shareholders. Nitin Kumbhani, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

A closer look at our ownership figures suggests that the top 24 shareholders have a combined ownership of 50% implying that 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. 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 Fiera Capital

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

I can report that insiders do own shares in Fiera Capital Corporation. It has a market capitalization of just CA$1.1b, and insiders have CA$53m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, with a 49% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fiera Capital better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Fiera Capital you should be aware of, and 1 of them doesn't sit too well with us.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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