BMTC Group Inc.'s (TSE:GBT) market cap increased by CA$47m, insiders receive a 68% cut

Key Insights

• Significant insider control over BMTC Group implies vested interests in company growth
• The largest shareholder of the company is Yves Groseillers with a 66% stake
• 13% of BMTC Group is held by Institutions

To get a sense of who is truly in control of BMTC Group Inc. (TSE:GBT), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 68% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CA$47m last week.

In the chart below, we zoom in on the different ownership groups of BMTC Group.

See our latest analysis for BMTC Group

What Does The Institutional Ownership Tell Us About BMTC Group?

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.

We can see that BMTC Group does have institutional investors; and they hold a good portion of the company's stock. 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 BMTC Group's historic earnings and revenue below, but keep in mind there's always more to the story.

BMTC Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yves Groseillers with 66% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. FMR LLC is the second largest shareholder owning 13% of common stock, and Jacques Tanguay holds about 0.3% of the company stock.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of BMTC Group

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.

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 most recent data indicates that insiders own the majority of BMTC Group Inc.. This means they can collectively make decisions for the company. That means they own CA$333m worth of shares in the CA$492m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over BMTC Group. 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 BMTC Group better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with BMTC Group (including 1 which is a bit concerning) .

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.