With 36% ownership in Tile Shop Holdings, Inc. (NASDAQ:TTSH), insiders continue to have the largest holding even though they have sold shares recently
Key Insights
-
Tile Shop Holdings' significant insider ownership suggests inherent interests in company's expansion
-
A total of 4 investors have a majority stake in the company with 52% ownership
To get a sense of who is truly in control of Tile Shop Holdings, Inc. (NASDAQ:TTSH), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 36% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
Despite recent sales, insiders own the most shares in the company.
Let's delve deeper into each type of owner of Tile Shop Holdings, beginning with the chart below.
See our latest analysis for Tile Shop Holdings
What Does The Institutional Ownership Tell Us About Tile Shop 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.
We can see that Tile Shop Holdings does have institutional investors; and they hold a good portion of the company's stock. 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 Tile Shop Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.
It would appear that 12% of Tile Shop Holdings shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. The company's largest shareholder is Peter Jacullo, with ownership of 19%. For context, the second largest shareholder holds about 15% of the shares outstanding, followed by an ownership of 12% by the third-largest shareholder. Furthermore, CEO Cabell Lolmaugh is the owner of 0.5% of the company's shares.
On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.