TerraVest Industries Inc.'s (TSE:TVK) 3.9% loss last week hit both individual investors who own 42% as well as institutions

Key Insights

• The considerable ownership by retail investors in TerraVest Industries indicates that they collectively have a greater say in management and business strategy
• A total of 14 investors have a majority stake in the company with 50% ownership
• Recent purchases by insiders

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A look at the shareholders of TerraVest Industries Inc. (TSE:TVK) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 3.9% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 30% stock also took a hit.

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

Check out our latest analysis for TerraVest Industries

What Does The Institutional Ownership Tell Us About TerraVest Industries?

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.

TerraVest Industries 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at TerraVest Industries' earnings history below. Of course, the future is what really matters.

TerraVest Industries 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 TerraVest Industries' case, its Top Key Executive, Charles Pellerin, is the largest shareholder, holding 16% of shares outstanding. With 11% and 9.2% of the shares outstanding respectively, Mawer Investment Management Ltd. and Lee-Lan Holdings Ltd are the second and third largest shareholders. In addition, we found that Dustin Haw, the CEO has 0.8% of the shares allocated to their name.

After doing some more digging, we found that the top 14 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. 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 TerraVest Industries

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 a reasonable proportion of TerraVest Industries Inc.. It has a market capitalization of just CA$3.0b, and insiders have CA$559m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over TerraVest Industries. 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 9.2%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Be aware that TerraVest Industries is showing 1 warning sign in our investment analysis , you should know about...

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.