Can We See Significant Institutional Ownership On The Tilray, Inc. (NASDAQ:TLRY) Share Register?

The big shareholder groups in Tilray, Inc. (NASDAQ:TLRY) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

Tilray has a market capitalization of US$7.7b, so it’s too big to fly under the radar. We’d expect to see both institutions and retail investors owning a portion of the company. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about TLRY.

View our latest analysis for Tilray

What Does The Institutional Ownership Tell Us About Tilray?

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.

As you can see, institutional investors own 8.6% of Tilray. 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. 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 Tilray’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

We note that hedge funds don’t have a meaningful investment in Tilray. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Tilray

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.