A look at the shareholders of Phivida Holdings
Inc (CNSX:VIDA) can tell us
which group is most powerful. Insiders often own a large chunk of
younger, smaller, companies while huge companies tend to have
institutions as shareholders. I generally like to see some degree
of insider ownership, even if only a little. As Nassim Nicholas
Taleb said, âDonât tell me what you think, tell me what you have in
With a market capitalization of CA$72.2m, Phivida
Holdings is a small cap stock, so it might not be well known by
many institutional investors. Our analysis of the ownership of the
company, below, shows that institutions donât own shares in the
company. We can zoom in on the different ownership groups, to learn
more about VIDA.
See our latest analysis for
We donât tend to see institutional investors
holding stock of companies that are very risky, thinly traded, or
very small. Though we do sometimes see large companies without
institutions on the register, itâs not particularly common.
There are many reasons why a company might not
have any institutions on the share registry. It may be hard for
institutions to buy large amounts of shares, if liquidity (the
amount of shares traded each day) is low. If the company has not
needed to raise capital, institutions might lack the opportunity to
build a position. It is also possible that fund managers donât own
the stock because they arenât convinced it will perform well.
Phivida Holdings might not have the sort of past performance
institutions are looking for, or perhaps they simply have not
studied the business closely.
We note that hedge funds donât have a meaningful
investment in Phivida Holdings. As far I can tell there isnât
analyst coverage of the company, so it is probably flying under the
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 information suggests that insiders maintain a
significant holding in Phivida Holdings Inc. Insiders own CA$12.1m
worth of shares in the CA$72.2m 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.
The general public â mostly retail investors â
own 82.9% of Phivida Holdings . With this size of ownership, retail
investors can collectively play a role in decisions that affect
shareholder returns, such as dividend policies and the appointment
of directors. They can also exercise the power to decline an
acquisition or merger that may not improve profitability.
Itâs always worth thinking about the different
groups who own shares in a company. But to understand Phivida
Holdings better, we need to consider many other factors.
I like to dive deeper into how a
company has performed in the past. You can access this interactive
graph of past earnings, revenue and cash flow for free
Of course this may not be the best stock
to buy. Therefore, you may wish to see our free
collection of interesting prospects boasting favorable
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
To help readers see past the short term
volatility of the financial market, we aim to bring you a long-term
focused research analysis purely driven by fundamental data. Note
that our analysis does not factor in the latest price-sensitive
The author is an independent contributor and at the time of
publication had no position in the stocks mentioned. For errors
that warrant correction please contact the editor at