TSE:CRON) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.” data-reactid=”28″>Every investor in Cronos Group Inc. (TSE:CRON) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
Cronos Group has a market capitalization of CA$2.4b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholders can tell us about Cronos Group.
See our latest analysis for Cronos Group ” data-reactid=”30″> See our latest analysis for Cronos Group
What Does The Institutional Ownership Tell Us About Cronos 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.
Cronos Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cronos Group’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Hedge funds don’t have many shares in Cronos Group. Our data shows that Altria Group, Inc. is the largest shareholder with 45% of shares outstanding. ETF Managers Group LLC is the second largest shareholder owning 2.3% of common stock, and Jason Adler holds about 1.9% of the company stock. Jason Adler, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company’s decision-making.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Cronos Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
click here to see if insiders have been buying or selling. ” data-reactid=”72″>Our most recent data indicates that insiders own some shares in Cronos Group Inc.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CA$65m 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, with a 38% stake in the company, will not easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
Public companies currently own 45% of Cronos Group stock. It’s hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it’s worth watching this space for changes in ownership.
Next Steps:
3 warning signs for Cronos Group you should be aware of, and 1 of them makes us a bit uncomfortable.” data-reactid=”78″>It’s always worth thinking about the different groups who own shares in a company. But to understand Cronos Group better, we need to consider many other factors. Case in point: We’ve spotted 3 warning signs for Cronos Group you should be aware of, and 1 of them makes us a bit uncomfortable.
this free report showing whether analysts are predicting a brighter future.” data-reactid=”79″>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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”81″>This article by Simply Wall St is general in nature. 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.
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