Institutional investors are Sleep Country Canada Holdings Inc.’s (TSE:ZZZ) biggest bettors and were rewarded after last week’s CA$78m market cap gain

A look at the shareholders of Sleep Country Canada Holdings Inc. (TSE: ZZZ) tells us which group is the strongest. And the group that holds the biggest piece of the pie is 58% owned by institutions. That is, the group gains the most when the stock rises (or loses the most when there is a downturn).

The 5.9% gain last week means institutional investors were on the positive end of the spectrum, even though the company has shown strong longer-term trends. The one-year return is currently 43% and last week’s profit would have been more than welcome.

In the graphic below, we enlarge the various ownership groups of Sleep Country Canada Holdings.

Check out our latest analysis for Sleep Country Canada Holdings

TSX: ZZZ Property Breakdown Jan 13, 2022

What does institutional ownership tell us about Sleep Country Canada Holdings?

Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are in major indices.

As you can see, institutional investors have a fair stake in Sleep Country Canada Holdings. This implies that the analysts at these institutions have looked at the stock and like it. But like everyone else, they can be wrong too. It is not uncommon for the stock price to drop sharply when two large institutional investors are trying to sell a stock at the same time. So it’s worth checking out Sleep Country Canada Holdings’ past earnings history (below). Of course, keep in mind that there are other factors to consider as well.

Revenue-and-revenue growth
TSX: ZZZ earnings and revenue growth Jan 13, 2022

With institutional investors owning more than half of the stocks in issue, the board of directors will likely need to be mindful of their preferences. Hedge funds don’t have many shares in Sleep Country Canada Holdings. Mawer Investment Management Limited is currently the company’s largest shareholder with 13% of the shares outstanding. FMR LLC is the second largest shareholder with 10% of the common stock and Burgundy Asset Management Ltd. holds approximately 9.6% of the company’s shares. Additionally, we’ve determined that Stewart Schaefer, the CEO, owns 0.6% of the shares in their name.

A look at the shareholder register shows that 51% of the property is controlled by the top 12 shareholders, meaning that no single shareholder has a controlling stake in the property.

Studying institutional ownership is a great way to measure and filter the expected performance of a stock. The same can be achieved by examining the sentiments of the analysts. Quite a few analysts cover the stock, making it easy for you to examine projected growth.

Inside ownership of Sleep Country Canada Holdings

The definition of corporate insider can be subjective and varies depending on the legal system. Our data reflects individual insiders and at least includes board members. The company management is subordinate to the board of directors and this should represent the interests of the shareholders. It is noteworthy that sometimes top managers sit on the board themselves.

Most consider insider ownership to be a positive as it may indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated within this group.

We can see insiders own shares of Sleep Country Canada Holdings Inc. It’s a pretty big company, so it’s generally positive to see potentially meaningful alignment. In this case, they own approximately CA $ 41 million worth of shares at current prices. If you’d like to investigate the insider alignment issue, you can click here to see if insiders bought or sold.

General public property

The public, usually individual investors, own a 39% stake in Sleep Country Canada Holdings. While this property size may not be sufficient to sway a political decision in their favor, they can still have a collective influence on company policy.

Next Steps:

I find it very interesting to see who exactly owns a company. But to really gain insight, we need to consider other information as well. For example, think of risks. Every company has them and we discovered them 2 warning signs for Sleep Country Canada Holdings you should know.

If you’d rather find out what analysts are predicting in terms of future growth, don’t miss out for free Report on analyst forecast.

Note: The numbers in this article are calculated using data from the past twelve months, which refers to the twelve month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the financial statements.

This article from Simply Wall St is of a general nature. We only provide comments based on historical data and analyst projections using an unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not reflect the latest company announcements or quality material, which is sensitive to the price. Simply Wall St has no position in any of the stocks mentioned.

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