In This Article:
Key Insights
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Significant control over Calix by individual investors implies that the general public has more power to influence management and governance-related decisions
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A total of 16 investors have a majority stake in the company with 50% ownership
A look at the shareholders of Calix Limited (ASX:CXL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 12% increase in the stock price last week, individual investors profited the most, but institutions who own 33% stock also stood to gain from the increase.
Let's delve deeper into each type of owner of Calix, beginning with the chart below.
See our latest analysis for Calix
What Does The Institutional Ownership Tell Us About Calix?
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 Calix 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 Calix's historic earnings and revenue below, but keep in mind there's always more to the story.
Calix is not owned by hedge funds. Australian Super Pty Ltd is currently the company's largest shareholder with 16% of shares outstanding. The second and third largest shareholders are Nicholas Merriman and TIGA Trading Pty Ltd, Asset Management Arm, with an equal amount of shares to their name at 6.0%. Furthermore, CEO Philip Hodgson is the owner of 1.9% of the company's shares.
After doing some more digging, we found that the top 16 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.