The considerable ownership by retail investors in VerticalScope Holdings indicates that they collectively have a greater say in management and business strategy
51% of the business is held by the top 5 shareholders
To get a sense of who is truly in control of VerticalScope Holdings Inc. (TSE:FORA), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As market cap fell to CA$271m last week, retail investors would have faced the highest losses than any other shareholder groups of the company.
Let's delve deeper into each type of owner of VerticalScope Holdings, beginning with the chart below.
What Does The Institutional Ownership Tell Us About VerticalScope Holdings?
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.
VerticalScope Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 VerticalScope Holdings' earnings history below. Of course, the future is what really matters.
TSX:FORA Earnings and Revenue Growth February 25th 2025
Hedge funds don't have many shares in VerticalScope Holdings. NordStar Capital LP is currently the largest shareholder, with 15% of shares outstanding. RDL Ventures Inc. is the second largest shareholder owning 14% of common stock, and Acadia Ventures Limited. holds about 12% of the company stock. Additionally, the company's CEO Robert Laidlaw directly holds 1.1% of the total shares outstanding.
On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 VerticalScope Holdings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can report that insiders do own shares in VerticalScope Holdings Inc.. In their own names, insiders own CA$5.8m worth of stock in the CA$271m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over VerticalScope Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With a stake of 29%, private equity firms could influence the VerticalScope Holdings board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Private Company Ownership
It seems that Private Companies own 12%, of the VerticalScope Holdings stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for VerticalScope Holdings you should be aware of, and 1 of them shouldn't be ignored.
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.
