While individual investors own 27% of Canfor Pulp Products Inc. (TSE:CFX), public companies are its largest shareholders with 55% ownership
Key Insights
The considerable ownership by public companies in Canfor Pulp Products indicates that they collectively have a greater say in management and business strategy
Canfor Corporation owns 55% of the company
To get a sense of who is truly in control of Canfor Pulp Products Inc. (TSE:CFX), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual investors on the other hand have a 27% ownership in the company.
Let's delve deeper into each type of owner of Canfor Pulp Products, beginning with the chart below.
Check out our latest analysis for Canfor Pulp Products
What Does The Institutional Ownership Tell Us About Canfor Pulp Products?
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 companies to have some institutions on the register, especially if they are growing.
We can see that Canfor Pulp Products does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Canfor Pulp Products, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Canfor Pulp Products. Our data shows that Canfor Corporation is the largest shareholder with 55% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 15% and 0.7% of the stock.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Canfor Pulp Products
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 most recent data indicates that insiders own less than 1% of Canfor Pulp Products Inc.. It has a market capitalization of just CA$136m, and the board has only CA$261k worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Canfor Pulp Products. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
We can see that public companies hold 55% of the Canfor Pulp Products 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.
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.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
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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.
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