Yahoo Finance Public companies invested in Canfor Pulp Products Inc. (TSE:CFX) copped the brunt of last week's CA$42m market cap decline
If you want to know who really controls Canfor Pulp Products Inc. (TSE:CFX), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And last week, public companies endured the biggest losses as the stock fell by 14%.
Let's take a closer look to see what the different types of shareholders can tell us about Canfor Pulp Products.
View our latest analysis for Canfor Pulp Products
What Does The Institutional Ownership Tell Us About Canfor Pulp Products?
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.
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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Canfor Pulp Products' historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Canfor Pulp Products. The company's largest shareholder is Canfor Corporation, with ownership of 55%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 15% and 2.3% of the shares outstanding respectively, Letko, Brosseau & Associates Inc. and Skagen AS are the second and third largest shareholders.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
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.
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 information suggests that Canfor Pulp Products Inc. insiders own under 1% of the company. It seems the board members have no more than CA$539k worth of shares in the CA$264m company. 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 25% 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
It appears to us that public companies own 55% of Canfor Pulp Products. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Canfor Pulp Products has 1 warning sign we think you should be aware of.
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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