In This Article:
Key Insights
-
Institutions' substantial holdings in Calfrac Well Services implies that they have significant influence over the company's share price
-
50% of the business is held by the top 3 shareholders
If you want to know who really controls Calfrac Well Services Ltd. (TSE:CFW), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 49% 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.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about Calfrac Well Services.
Check out our latest analysis for Calfrac Well Services
What Does The Institutional Ownership Tell Us About Calfrac Well Services?
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.
As you can see, institutional investors have a fair amount of stake in Calfrac Well Services. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Calfrac Well Services, (below). Of course, keep in mind that there are other factors to consider, too.
Calfrac Well Services is not owned by hedge funds. The company's largest shareholder is G2s2 Capital Inc., with ownership of 34%. In comparison, the second and third largest shareholders hold about 10% and 6.3% of the stock. Ronald Mathison, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.