TSXV:APC.H - Post by User
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Wonnetron Apr 26, 2018 8:31am
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Post# 27942746
Who Are APC’s Major Shareholders?
Who Are APC’s Major Shareholders?Who Are APCs Major Shareholders: I am going to take a deep dive into Advanced Proteome Therapeutics Corporations (TSXV:APC) most recent ownership structure, not a frequent subject of discussion among individual investors. Ownership structure of a company has been found to affect share performance over time. Different types of investors can have varying degrees of influence on a companys management team. For example, an active institutional investor may be more likely to hold a company accountable for certain actions whereas a passive fund will move in and out of stocks without regards to corporate governance. The implications of these institutions actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. Therefore, I will take a look at APCs shareholders in more detail. Insider Ownership: Another important group of shareholders are company insiders. Insider ownership has to do more with how the company is managed and less to do with the direct impact of the magnitude of shares trading on the market. APC insiders hold a not-so-significant 2.85% stake in the company, which somewhat aligns their interests with that of shareholders. However, a higher level of insider ownership has been linked to management executing on high-returning projects instead of expansion projects for the sake of apparent growth. It would also be interesting to check what insiders have been doing with their shareholding recently. Insider buying can be a positive indicator of future performance, but a selling decision can be simply driven by personal financial requirements. General Public Ownership: The general public holds a substantial 94.65% stake in APC, making it a highly popular stock among retail investors. This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. This is a positive sign for an investor who wants to be involved in key decision-making of the company. Private Company Ownership: Potential investors in APC should also look at another important group of investors: private companies, with a stake of 2.50%, who are primarily invested because of strategic and capital gain interests. However, an ownership of this size may be relatively insignificant, meaning that these shareholders may not have the potential to influence APCs business strategy. Thus, investors not need worry too much about the consequences of these holdings.