Private companies among Mainstreet Equity Corp.'s (TSE:MEQ) largest shareholders, saw gain in holdings value after stock jumped 3.8% last week

Key Insights

• The considerable ownership by private companies in Mainstreet Equity indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 3 shareholders
• Institutions own 19% of Mainstreet Equity

A look at the shareholders of Mainstreet Equity Corp. (TSE:MEQ) can tell us which group is most powerful. With 41% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies were the biggest beneficiaries of last week’s 3.8% gain.

Let's delve deeper into each type of owner of Mainstreet Equity, beginning with the chart below.

See our latest analysis for Mainstreet Equity

What Does The Institutional Ownership Tell Us About Mainstreet Equity?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Mainstreet Equity does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Mainstreet Equity's earnings history below. Of course, the future is what really matters.

Mainstreet Equity is not owned by hedge funds. Our data shows that Pan Pacific Mercantile Group Inc. is the largest shareholder with 41% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.4% and 5.3%, of the shares outstanding, respectively. Navjeet Dhillon, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Mainstreet Equity

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own some shares in Mainstreet Equity Corp.. This is a big company, so it is good to see this level of alignment. Insiders own CA$152m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 33% stake in the company, and hence can't 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.

Private Company Ownership

Our data indicates that Private Companies hold 41%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Mainstreet Equity better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Mainstreet Equity you should be aware of, and 2 of them are a bit concerning.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.