What Percentage Of Viemed Healthcare, Inc. (TSE:VMD) Shares Do Insiders Own?

First Asset Investment Management Inc. is the second largest shareholder owning 4.8% of common stock, and BlackRock, Inc. holds about 4.6% of the …

If you want to know who really controls Viemed Healthcare, Inc. (TSE:VMD), then you’ll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.

Viemed Healthcare is not a large company by global standards. It has a market capitalization of CA$538m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about Viemed Healthcare.

View our latest analysis for Viemed Healthcare

ownership-breakdown
TSX:VMD Ownership Breakdown September 4th 2020

What Does The Institutional Ownership Tell Us About Viemed Healthcare?

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.

We can see that Viemed Healthcare does have institutional investors; and they hold a good portion of the company’s stock. 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 Viemed Healthcare’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSX:VMD Earnings and Revenue Growth September 4th 2020

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Viemed Healthcare is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Casey Hoyt with 5.3% of shares outstanding. First Asset Investment Management Inc. is the second largest shareholder owning 4.8% of common stock, and BlackRock, Inc. holds about 4.6% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Viemed Healthcare

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. 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.

Our most recent data indicates that insiders own a reasonable proportion of Viemed Healthcare, Inc.. Insiders own CA$58m worth of shares in the CA$538m company. I 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

With a 34% ownership, the general public have some degree of sway over Viemed Healthcare. 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. Case in point: We’ve spotted 4 warning signs for Viemed Healthcare you should be aware of, and 1 of them is a bit unpleasant.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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