Key Insights

Given the large stake in the stock by institutions, Tricon Residential's stock price might be vulnerable to their trading decisions A total of 16 investors have a majority stake in the company with 51% ownership Insiders have been buying lately

A look at the shareholders of Tricon Residential Inc. (TSE:TCN) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 70% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for institutional investors after the company gained CA$121m in market cap last week. One-year return to shareholders is currently 13% and last week’s gain was the icing on the cake.

Let's delve deeper into each type of owner of Tricon Residential, beginning with the chart below.

View our latest analysis for Tricon Residential  TSX:TCN Ownership Breakdown January 13th 2024

What Does The Institutional Ownership Tell Us About Tricon Residential?

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.

As you can see, institutional investors have a fair amount of stake in Tricon Residential. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Tricon Residential, (below). Of course, keep in mind that there are other factors to consider, too. TSX:TCN Earnings and Revenue Growth January 13th 2024

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Tricon Residential. BMO Asset Management Corp. is currently the largest shareholder, with 6.7% of shares outstanding. T. Rowe Price Group, Inc. is the second largest shareholder owning 6.7% of common stock, and CI Global Asset Management holds about 5.5% of the company stock. Furthermore, CEO Gary Berman is the owner of 0.7% of the company's shares.



Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Tricon Residential

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

We can report that insiders do own shares in Tricon Residential Inc.. This is a big company, so it is good to see this level of alignment. Insiders own CA$101m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tricon Residential. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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. Like risks, for instance. Every company has them, and we've spotted  5 warning signs for Tricon Residential  (of which 2 are a bit unpleasant!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.