The ownership structure of Spin Master Corp. (TSE: TOY) could she tell us something useful?

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A look at the shareholders of Spin Master Corp. (TSE: TOY) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.

With a market cap of C$4.4 billion, Spin Master is pretty big. We expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Our analysis of company ownership, below, shows that the institutions are visible on the share register. Let’s dig deeper into each owner type to learn more about Spin Master.

Check out our latest review for Spin Master

TSX: TOY Ownership Breakdown June 26, 2022

What does institutional ownership tell us about Spin Master?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Spin Master already has institutions on the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Spin Master’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSX: TOY Earnings and Revenue Growth June 26, 2022

Spin Master does not belong to hedge funds. From our data, we deduce that the largest shareholder is Anton Rabie (who also holds the title of Top Key Executive) with 30% of the shares outstanding. It’s generally considered a good sign when insiders hold a significant amount of stock in the company, and in that case, we’re happy to see a company insider act as a key stakeholder. In comparison, the second and third shareholders hold around 26% and 5.9% of the shares. Interestingly, the third shareholder, Ben Varadi, is also a member of the board, again indicating strong insider ownership among the company’s major shareholders.

A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 56% stake.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Spin Master Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders hold a significant stake in Spin Master Corp. It has a market capitalization of just C$4.4 billion, and insiders have shares worth C$1.8 billion in their own name. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

With a 17% stake, the general public, consisting mostly of individual investors, has some influence over Spin Master. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

We can see that private companies hold 30% of the issued shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Spin Master, we need to consider many other factors.

I always like to check a revenue growth history. You can also, by accessing this free revenue and profit history chart in this detailed graph.

But finally it’s the future, not the past, that will determine the success of the owners of this business. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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