U.S. markets open in 48 minutes
  • S&P Futures

    3,879.75
    -43.00 (-1.10%)
     
  • Dow Futures

    31,099.00
    -341.00 (-1.08%)
     
  • Nasdaq Futures

    11,800.75
    -134.75 (-1.13%)
     
  • Russell 2000 Futures

    1,755.30
    -17.50 (-0.99%)
     
  • Crude Oil

    106.54
    -3.05 (-2.78%)
     
  • Gold

    1,833.20
    +17.30 (+0.95%)
     
  • Silver

    21.72
    +0.18 (+0.82%)
     
  • EUR/USD

    1.0543
    +0.0077 (+0.74%)
     
  • 10-Yr Bond

    2.8230
    -0.0630 (-2.18%)
     
  • Vix

    32.04
    +5.94 (+22.76%)
     
  • GBP/USD

    1.2425
    +0.0083 (+0.67%)
     
  • USD/JPY

    127.2520
    -1.0450 (-0.81%)
     
  • BTC-USD

    29,401.40
    -390.93 (-1.31%)
     
  • CMC Crypto 200

    653.63
    -17.05 (-2.54%)
     
  • FTSE 100

    7,275.85
    -162.24 (-2.18%)
     
  • Nikkei 225

    26,402.84
    -508.36 (-1.89%)
     

Are Institutions Heavily Invested In Maxeon Solar Technologies, Ltd.'s (NASDAQ:MAXN) Shares?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

If you want to know who really controls Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.

Maxeon Solar Technologies is not a large company by global standards. It has a market capitalization of US$474m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Maxeon Solar Technologies.

See our latest analysis for Maxeon Solar Technologies

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Maxeon Solar Technologies?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Maxeon Solar Technologies does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Maxeon Solar Technologies, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in Maxeon Solar Technologies. TotalEnergies SE is currently the company's largest shareholder with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 24% and 8.9% of the stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Maxeon Solar Technologies

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of Maxeon Solar Technologies, Ltd. in their own names. It has a market capitalization of just US$474m, and the board has only US$2.0m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Maxeon Solar Technologies. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

We can see that public companies hold 49% of the Maxeon Solar Technologies shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 4 warning signs for Maxeon Solar Technologies you should be aware of, and 1 of them doesn't sit too well with us.

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

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.