The big shareholder groups in BlackBerry Limited (TSE:BB) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of CA$5.8b, BlackBerry is rather large. We’d expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s delve deeper into each type of owner, to discover more about BB.

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TSX:BB Ownership Summary January 30th 19
TSX:BB Ownership Summary January 30th 19

What Does The Institutional Ownership Tell Us About BlackBerry?

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.

BlackBerry already has institutions on the share registry. Indeed, they own 53% of the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 BlackBerry’s earnings history, below. Of course, the future is what really matters.

TSX:BB Income Statement Export January 30th 19
TSX:BB Income Statement Export January 30th 19

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. BlackBerry is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of BlackBerry

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in BlackBerry Limited. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CA$89m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 45% stake in BB. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

 

[“source=simplywall”]