What kind of shareholders does Shenandoah Telecommunications Company (NASDAQ:SHEN) have?

A look at the shareholders of Shenandoah Telecommunications Company (NASDAQ:SHEN) can tell us which group is more powerful. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of $1.1 billion, Shenandoah Telecommunications is a decent size, so it’s probably on the radar of institutional investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about Shenandoah Telecommunications.

Check out our latest analysis for Shenandoah Telecommunications

distribution of property

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 suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. 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.

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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. BlackRock, Inc. is currently the company’s largest shareholder with 15% of the shares outstanding. The Vanguard Group, Inc. is the second largest shareholder with 9.8% of common stock and Christopher French owns approximately 3.6% of the company’s stock. Christopher French, who is the third shareholder, also holds the title of Chairman of the Board.

Looking at the shareholder register, we can see that 50% of the ownership is controlled by the 18 major shareholders, which means that no shareholder has a controlling interest in the ownership.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. 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.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders hold shares of Shenandoah Telecommunications Company. It’s a pretty big company, so it’s generally a positive to see a potentially meaningful alignment. In this case, they own about $44 million worth of stock (at today’s prices). It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.

General public property

The general public, who are usually individual investors, hold a 40% stake in Shenandoah Telecommunications. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. To do this, you need to find out about the 2 warning signs we spotted with Shenandoah Telecommunications (including 1 that should not be overlooked).

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.

Sean B. Jackson