Institutions profited after Tantalus Systems Holding Inc.'s (TSE:GRID) market cap rose CA$27m last week but individual investors profited the most

Key Insights

• Significant control over Tantalus Systems Holding by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 18 shareholders own 41% of the company
• Recent purchases by insiders

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If you want to know who really controls Tantalus Systems Holding Inc. (TSE:GRID), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 15% increase in the stock price last week, individual investors profited the most, but institutions who own 19% stock also stood to gain from the increase.

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

See our latest analysis for Tantalus Systems Holding

What Does The Institutional Ownership Tell Us About Tantalus Systems Holding?

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.

Tantalus Systems Holding 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 Tantalus Systems Holding's historic earnings and revenue below, but keep in mind there's always more to the story.

Tantalus Systems Holding is not owned by hedge funds. The company's largest shareholder is PenderFund Capital Management Ltd., with ownership of 16%. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 3.3% by the third-largest shareholder. Furthermore, CEO Peter Londa is the owner of 3.1% of the company's shares.

On studying our ownership data, we found that 18 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 Tantalus Systems Holding

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.

We can report that insiders do own shares in Tantalus Systems Holding Inc.. It has a market capitalization of just CA$206m, and insiders have CA$14m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 59% of Tantalus Systems Holding shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Equity Ownership

Private equity firms hold a 15% stake in Tantalus Systems Holding. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.