While individual investors own 42% of Acadian Timber Corp. (TSE:ADN), private companies are its largest shareholders with 47% ownership
In This Article:
Key Insights
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Significant control over Acadian Timber by private companies implies that the general public has more power to influence management and governance-related decisions
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The top 2 shareholders own 55% of the company
To get a sense of who is truly in control of Acadian Timber Corp. (TSE:ADN), it is important to understand the ownership structure of the business. With 47% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 42% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Acadian Timber.
See our latest analysis for Acadian Timber
What Does The Institutional Ownership Tell Us About Acadian Timber?
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.
Acadian Timber already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Acadian Timber's earnings history below. Of course, the future is what really matters.
Acadian Timber is not owned by hedge funds. Macer Forest Holdings Inc. is currently the company's largest shareholder with 47% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.1% and 1.8% of the stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Acadian Timber
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.