In This Article:
Key Insights
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The considerable ownership by public companies in Canfor Pulp Products indicates that they collectively have a greater say in management and business strategy
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Canfor Corporation owns 55% of the company
To get a sense of who is truly in control of Canfor Pulp Products Inc. (TSE:CFX), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual investors on the other hand have a 27% ownership in the company.
Let's delve deeper into each type of owner of Canfor Pulp Products, beginning with the chart below.
Check out our latest analysis for Canfor Pulp Products
What Does The Institutional Ownership Tell Us About Canfor Pulp Products?
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 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. 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 Canfor Pulp Products, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Canfor Pulp Products. Our data shows that Canfor Corporation is the largest shareholder with 55% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 15% and 0.7% of the stock.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
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.