This is what the shareholding structure of Shenandoah Telecommunications Company (NASDAQ:SHEN) looks like

The large shareholder groups of Shenandoah Telecommunications Company (NASDAQ:SHEN) have power over the company. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. We also tend to see a decline in insider participation in companies that were previously public.

Shenandoah Telecommunications has a market capitalization of US$1.1 billion, so we expect some institutional investors to have taken notice of the stock. Our analysis of societal ownership below shows that institutions own shares in society. Let’s dig deeper into each owner type to learn more about Shenandoah Telecommunications.

NasdaqGS: Distribution of SHEN ownership on July 21, 2022

What does institutional ownership tell us about Shenandoah Telecommunications?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We can see that Shenandoah Telecommunications has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out the earnings history of Shenandoah Telecommunications below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS: SHEN Earnings and Revenue Growth July 21, 2022

Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Hedge funds don’t have a lot of shares in Shenandoah Telecommunications. Our data shows that BlackRock, Inc. is the largest shareholder with 16% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder with 10% common stock and Christopher French owns approximately 3.7% of the company’s stock. Christopher French, who is the third shareholder, also holds the title of Chairman of the Board.

After digging a little deeper, we found that the top 20 held a combined 50% stake in the company, suggesting that no single shareholder has significant control over the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider ownership of Shenandoah Telecommunications

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 runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our most recent data indicates that insiders hold shares of Shenandoah Telecommunications Company. Insiders have a significant stake worth US$44 million. Most would see this as a real positive. Most would say this shows the alignment of interests between shareholders and the board. Still, it might be worth checking to see if these insiders have sold.

General public property

The general public, including retail investors, owns 41% of the company’s shares and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Shenandoah Telecommunications, we need to consider many other factors. Be aware that Shenandoah Telecommunications shows 2 warning signs in our investment analysis you should know…

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sean B. Jackson