In This Article:
Key Insights
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Finning International's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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44% of the business is held by the top 25 shareholders
If you want to know who really controls Finning International Inc. (TSE:FTT), 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 52% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Retail investors gained the most after market cap touched CA$5.4b last week, while institutions who own 48% also benefitted.
In the chart below, we zoom in on the different ownership groups of Finning International.
Check out our latest analysis for Finning International
What Does The Institutional Ownership Tell Us About Finning International?
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 Finning International 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 Finning International, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Finning International. FMR LLC is currently the largest shareholder, with 9.3% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.9% and 4.1%, 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 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.