Institutional Investors in Village Super Market, Inc. (NASDAQ:VLGE.A) See US$53m Decrease in Market Cap Last Week, Although Long-term Gains Have Benefitted Them.

Key Insights

Given the large stake in the stock by institutions, Village Super Market's stock price might be vulnerable to their trading decisions
The top 10 shareholders own 52% of the company
Insiders own 37% of Village Super Market

To get a sense of who is truly in control of Village Super Market, Inc. (NASDAQ:VLGE.A), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors endured the highest losses after the company's market cap fell by US$53m last week. However, the 27% one-year return to shareholders may have helped lessen their pain. They should, however, be mindful of further losses in the future.

In the chart below, we zoom in on the different ownership groups of Village Super Market.

ownership-breakdown — NasdaqGS:VLGE.A Ownership Breakdown June 7th 2024

What Does The Institutional Ownership Tell Us About Village Super Market?

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.

Village Super Market 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. 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 Village Super Market's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — NasdaqGS:VLGE.A Earnings and Revenue Growth June 7th 2024

We note that hedge funds don't have a meaningful investment in Village Super Market. Looking at our data, we can see that the largest shareholder is Steven Crystal with 9.5% of shares outstanding. For context, the second largest shareholder holds about 8.2% of the shares outstanding, followed by an ownership of 7.1% by the third-largest shareholder. Note that the second and third-largest shareholders are also Co-President and Vice Chairman, respectively, meaning that the company's top shareholders are insiders.

We did some more digging and found that 10 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Village Super Market

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Village Super Market, Inc.. Insiders own US$149m worth of shares in the US$407m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. 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.

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 example, we've discovered 1 warning sign for Village Super Market that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.