key insights
Insiders appear to have a vested interest in Wall Financial’s growth, as evidenced by their large ownership stake.
Top 2 shareholders own 54% of the company
A company’s past performance data, combined with ownership research, allows you to better assess a company’s future performance.
A look at the shareholders of Wall Financial Corporation (TSE:WFC) can tell us which group is the most powerful. With 58% of the shares, individual insiders hold the largest stake in the company. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
So it follows that every decision Wall Financial insiders make about the future of the company is extremely important to them.
Let’s dig deeper into each type of owner for Wall Financial, starting from the graph below.
Check out our latest analysis for Wall Financial.
Ownership breakdown
What does the lack of institutional ownership say about Wall Financial?
Institutional investors are less likely to own stocks in companies that are very risky, thinly traded, or very small. We sometimes see large companies without a registered body, but this is not particularly common.
There are many reasons why companies do not have institutions on the share register. If liquidity (the amount of shares traded each day) is low, it can be difficult for institutional investors to buy large amounts of stock. If a company does not need to raise capital, financial institutions may lack opportunities to build position. On the other hand, there’s always the possibility that professional investors are avoiding a company because they don’t think it’s the best place for their money. Wall Financial may not have the past track record that financial institutions are looking for, or they may simply not have studied the business closely.
Profit and revenue growth
Hedge funds don’t have many shares in Wall Financial. Peter Wall is currently the company’s largest shareholder with 33% of outstanding shares. Meanwhile, the second and third largest shareholders hold 22% and 13% of the shares outstanding, respectively. Bruno Wall, the third largest shareholder, also happens to hold the title of Chairman of the Board.
To make our study more interesting, we found that the top 2 shareholders have majority ownership in the company. This means they have enough power to influence company decisions.
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. As far as we know, there isn’t any analyst coverage of the company, so it’s probably flying under the radar.
story continues
Wall Financial Insider Ownership
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. The answers of company management to the board of directors and the latter must represent the interests of shareholders. In particular, top-level managers themselves may sit on the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
It appears that insiders own more than half of Wall Financial Corporation’s shares. This gives them great power. Considering the company’s market capitalization is CA$617m, that means it owns CA$355m worth of shares. Most people would be happy to see the board investing alongside them. You may want to find out (for free) if they are buying or selling.
Open to the public
The general public (usually retail investors) owns 20% of Wall Financial’s stock. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Private company ownership
Our data shows that Private companies own 22%, of the company’s shares. It might be worth looking into this further. If insiders or other parties have an interest in these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Wall Financial is showing 3 warning signs in our investment analysis . Here’s what you need to know:
Of course, this may not be the best stock to buy. Take a peek at this free list of interesting companies.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
