Institutional investors control 52% of Kinaxis Inc. (TSE:KXS) and were rewarded last week after stock increased 7.5%

editorial-team@simplywallst.com (Simply Wall St)

Wed, Apr 16, 2025, 1:33 PM 4 min read

To get a sense of who is truly in control of Kinaxis Inc. (TSE:KXS), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 52% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, institutional investors ended up benefitting the most after the company hit CA$4.7b in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 15%.

Let's take a closer look to see what the different types of shareholders can tell us about Kinaxis.

See our latest analysis for Kinaxis

ownership-breakdown — TSX:KXS Ownership Breakdown April 16th 2025

What Does The Institutional Ownership Tell Us About Kinaxis?

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 Kinaxis 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Kinaxis' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — TSX:KXS Earnings and Revenue Growth April 16th 2025

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Kinaxis is not owned by hedge funds. Our data shows that Jarislowsky, Fraser Limited is the largest shareholder with 11% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 3.9% and 3.6%, of the shares outstanding, respectively.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Kinaxis

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.

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.

Shareholders would probably be interested to learn that insiders own shares in Kinaxis Inc.. The insiders have a meaningful stake worth CA$62m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in Kinaxis. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Kinaxis .

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.

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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.