Viemed Healthcare, Inc.'s (NASDAQ:VMD) institutional shareholders had a great week as one-year returns increased after a 12% gain last week
Key Insights
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Institutions' substantial holdings in Viemed Healthcare implies that they have significant influence over the company's share price
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50% of the business is held by the top 12 shareholders
To get a sense of who is truly in control of Viemed Healthcare, Inc. (NASDAQ:VMD), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 61% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And as as result, institutional investors reaped the most rewards after the company's stock price gained 12% last week. The one-year return on investment is currently 4.0% and last week's gain would have been more than welcomed.
In the chart below, we zoom in on the different ownership groups of Viemed Healthcare.
Check out our latest analysis for Viemed Healthcare
What Does The Institutional Ownership Tell Us About Viemed Healthcare?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Viemed Healthcare does have institutional investors; and they hold a good portion of the company's stock. 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 Viemed Healthcare's earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It would appear that 5.3% of Viemed Healthcare shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Our data shows that Thrivent Investment Management Inc. is the largest shareholder with 8.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.7% and 5.3%, of the shares outstanding, respectively. Casey Hoyt, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.