If you want to know who actually controls Triple-S Management Corporation (NYSE: GTS), then you will need to examine the makeup of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Warren Buffett said he enjoys “a business with sustainable competitive advantages, led by skilled people and owner-centered.” So it’s nice to see some insider ownership as it can suggest that the management is owner-driven.
Triple-S Management is not a large company by global standards. It has a market cap of US $ 567 million, which means it wouldn’t get the attention of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different property groups, to learn more about Triple-S management.
Check out our latest review for Triple-S management
What does institutional ownership tell us about Triple-S management?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors have a large stake in Triple-S Management. This implies that analysts working for these institutions have reviewed the title and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Triple-S Management’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Since institutional investors own more than half of the issued shares, the board will likely need to pay attention to their preferences. It seems that 10% of the shares of Triple-S Management are controlled by hedge funds. This is worth noting, as hedge funds are often quite active investors, who can try to influence management. Many want to see value creation (and a higher stock price) in the short to medium term. Our data shows that Hotchkis and Wiley Capital Management, LLC is the largest shareholder with 10% of the shares outstanding. With 9.1% and 8.5% of shares outstanding, respectively, FMR LLC and Pzena Investment Management, Inc. are the second and third largest shareholders. In addition, we found that Roberto Garcia-Rodriguez, the CEO, owns 1.8% of the shares attributed to their name.
Upon closer inspection, we found that more than half of the company’s stock is owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Insider Ownership of Triple-S Management
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in certain circumstances.
Shareholders would likely be interested to learn that insiders own shares of Triple-S Management Corporation. On their own behalf, insiders hold $ 30 million in shares of the $ 567 million company. It shows at least some alignment. You can click here to see if these insiders have bought or sold.
General public property
The general public holds 13% of the capital of Triple-S Management. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider, for example, the ever-present specter of investment risk. We have identified 2 warning signs with Triple-S Management, and understanding them should be part of your investment process.
Sure this might not be the best stock to buy. So take a look at this free free list of interesting companies.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
If you decide to trade Triple-S management, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account. Promoted
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.