While institutions invested in Andlauer Healthcare Group Inc. (TSE:AND) benefited from last week's 5.1% gain, private companies stood to gain the most

Simply Wall St · 09/15/2023 11:24

Key Insights

  • Significant control over Andlauer Healthcare Group by private companies implies that the general public has more power to influence management and governance-related decisions
  • 52% of the company is held by a single shareholder (Andlauer Management Group Inc.)
  • Insiders have been selling lately

To get a sense of who is truly in control of Andlauer Healthcare Group Inc. (TSE:AND), it is important to understand the ownership structure of the business. With 52% 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.

Following a 5.1% increase in the stock price last week, private companies profited the most, but institutions who own 30% 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 Andlauer Healthcare Group.

See our latest analysis for Andlauer Healthcare Group

ownership-breakdown
TSX:AND Ownership Breakdown September 15th 2023

What Does The Institutional Ownership Tell Us About Andlauer Healthcare 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.

Andlauer Healthcare Group 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Andlauer Healthcare Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSX:AND Earnings and Revenue Growth September 15th 2023

Hedge funds don't have many shares in Andlauer Healthcare Group. Andlauer Management Group Inc. is currently the company's largest shareholder with 52% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 4.5% and 4.4% of the shares outstanding respectively, Mawer Investment Management Ltd. and Capital Research and Management Company are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Andlauer Healthcare Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Andlauer Healthcare Group Inc.. This is a big company, so it is good to see this level of alignment. Insiders own CA$44m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 15% stake in Andlauer Healthcare Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 52%, of the shares on issue. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Andlauer Healthcare Group that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.