Could ParcelPal Technology Inc.'s (CNSX:PKG) Investor Composition Influence The Stock Price?




  • In Business
  • 2019-05-23 17:32:53Z
  • By Simply Wall St.
 

Every investor in ParcelPal Technology Inc. (CNSX:PKG) 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. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don't tell me what you think, tell me what you have in your portfolio.'

ParcelPal Technology is not a large company by global standards. It has a market capitalization of CA$19m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about PKG.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

See our latest analysis for ParcelPal Technology

What Does The Institutional Ownership Tell Us About ParcelPal Technology?

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.

Institutions own less than 5% of ParcelPal Technology. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in ParcelPal Technology. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of ParcelPal Technology

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own some shares in ParcelPal Technology Inc.. In their own names, insiders own CA$1.5m worth of stock in the CA$19m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly retail investors, hold a substantial 85% stake in PKG, suggesting it is a fairly popular stock. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand ParcelPal Technology better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

COMMENTS

More Related News

What Percentage Of AJ Lucas Group Limited (ASX:AJL) Shares Do Insiders Own?
What Percentage Of AJ Lucas Group Limited (ASX:AJL) Shares Do Insiders Own?

A look at the shareholders of AJ Lucas Group Limited (ASX:AJL) can tell us which group is most powerful. Institutions...

Can We See Significant Insider Ownership On The Agricultural Land Trust (ASX:AGJ) Share Register?
Can We See Significant Insider Ownership On The Agricultural Land Trust (ASX:AGJ) Share Register?

If you want to know who really controls Agricultural Land Trust (ASX:AGJ), then you'll have to look at the makeup of...

Could The Green River Gold Corp. (CNSX:CCR) Ownership Structure Tell Us Something Useful?
Could The Green River Gold Corp. (CNSX:CCR) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Green River Gold Corp. (CNSX:CCR) have power over the company. Generally speaking, as a...

What Type Of Shareholder Owns Jernigan Capital, Inc.
What Type Of Shareholder Owns Jernigan Capital, Inc.'s (NYSE:JCAP)?

The big shareholder groups in Jernigan Capital, Inc. (NYSE:JCAP) have power over the company. Generally speaking, as a...

What Kind Of Investor Owns Most Of First Citizens BancShares, Inc. (NASDAQ:FCNC.A)?
What Kind Of Investor Owns Most Of First Citizens BancShares, Inc. (NASDAQ:FCNC.A)?

A look at the shareholders of First Citizens BancShares, Inc. (NASDAQ:FCNC.A) can tell us which group is most...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.