What you need to know about the investor mix of Interfor Corporation (TSE: IFP)

A look at the shareholders of Interfor Corporation (TSE: IFP) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that were previously owned by the state tend to have fewer insiders.

With a market cap of C $ 1.8 billion, Interfor is a decent size, so it’s probably on the radar of institutional investors. Our analysis of company ownership, below, shows that institutions own shares in the company. We can zoom in on the different property groups, to find out more about Interfor.

See our latest analysis for Interfor

TSX: IFP Ownership Distribution October 30, 2021

What does institutional ownership tell us about Interfor?

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 businesses to have some institutions listed, especially if they are growing.

As you can see, institutional investors have a large stake in Interfor. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Interfor’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
TSX: IFP Profits and Revenue Growth October 30, 2021

Interfor does not belong to hedge funds. Letko, Brosseau & Associés inc. is currently the largest shareholder, with 10% of the shares outstanding. Pictet Asset Management Limited is the second largest shareholder holding 5.8% of the common shares, and Dimensional Fund Advisors LP owns approximately 3.8% of the shares of the company.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Interfor insider ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our most recent data indicates that insiders own less than 1% of Interfor Corporation. Keep in mind that this is a large company and insiders own stocks worth C $ 11 million. The absolute value can be more important than the proportional part. Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders have bought or sold.

General public property

With a 49% stake, the general public has some influence over Interfor. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider, for example, the ever-present specter of investment risk. We have identified 1 warning sign with Interfor and understanding them should be part of your investment process.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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