Yahoo Finance With 44% stake, Seneca Foods Corporation (NASDAQ:SENE.A) seems to have captured institutional investors' interest
Key Insights
Institutions' substantial holdings in Seneca Foods implies that they have significant influence over the company's share price
The top 17 shareholders own 51% of the company
Every investor in Seneca Foods Corporation (NASDAQ:SENE.A) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of Seneca Foods, beginning with the chart below.
See our latest analysis for Seneca Foods
What Does The Institutional Ownership Tell Us About Seneca Foods?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Seneca Foods does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Seneca Foods' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Seneca Foods. Seneca Foods Corp. Employees' Pension Benefit Plan is currently the company's largest shareholder with 8.1% of shares outstanding. With 7.7% and 6.1% of the shares outstanding respectively, Dimensional Fund Advisors LP and BlackRock, Inc. are the second and third largest shareholders. In addition, we found that Paul Palmby, the CEO has 2.6% of the shares allocated to their name.
A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Seneca Foods
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Seneca Foods Corporation. Insiders own US$44m worth of shares in the US$402m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Seneca Foods. 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:
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. Be aware that Seneca Foods is showing 2 warning signs in our investment analysis , you should know about...
Of course this may not be the best stock to buy. So take a peek at this free 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.
