Planet 13 Holdings Inc. (CSE:PLTH) stock price fell 13% last week; individual investors would not be happy
A look at the shareholders of Planet 13 Holdings Inc. (CSE: PLTH) can tell us which group is the most powerful. We can see that individual investors hold the lion’s share of the company with 57% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
While individual investor holdings took a hit after prices fell 13% last week, insiders with their 42% also suffered.
Let’s dive deeper into each Planet 13 Holdings owner type, starting with the table below.
Check out our latest analysis for Planet 13 Holdings
What does the lack of institutional ownership tell us about Planet 13 Holdings?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their liking. But it’s unusual to see large companies without institutional investors.
There are several explanations why institutions do not own stocks. The most common is that the business is too small relative to the funds under management, so the institution doesn’t bother to look closely at the business. Alternatively, there could be something about the company that has kept institutional investors away. Institutional investors may not find the company’s historic growth impressive, or there may be other factors at play. You can see Planet 13 Holdings’ past revenue performance, for yourself, below.
Planet 13 Holdings is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders hold a significant stake in a company. In the case of Planet 13 Holdings, its co-chief executive, Larry Scheffler, is the largest shareholder, owning 20% of the outstanding shares. Robert Groesbeck is the second largest shareholder with 20% of the common stock and Christopher Wren owns approximately 2.1% of the company’s stock. Interestingly, the second largest shareholder, Robert Groesbeck, is also co-CEO, again, indicating strong insider ownership among the company’s major shareholders.
A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider ownership of Planet 13 Holdings
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders hold a significant stake in Planet 13 Holdings Inc. It has a market capitalization of just C$733 million, and insiders hold C$309 million of stock in their own name. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.
General public property
The general public – including retail investors – owns 57% of Planet 13 Holdings. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 5 warning signs for Planet 13 Holdings (1 makes us a little uneasy!) that you should be aware of before investing here.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.