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While institutions own 12% of MCAN Mortgage Corporation (TSE:MKP), individual investors are its largest shareholders with 83% ownership
Key Insights
The considerable ownership by individual investors in MCAN Mortgage indicates that they collectively have a greater say in management and business strategy
The top 22 shareholders own 17% of the company
Every investor in MCAN Mortgage Corporation (TSE:MKP) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 83% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutions, on the other hand, account for 12% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let's take a closer look to see what the different types of shareholders can tell us about MCAN Mortgage.
View our latest analysis for MCAN Mortgage
What Does The Institutional Ownership Tell Us About MCAN Mortgage?
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 MCAN Mortgage does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 MCAN Mortgage's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in MCAN Mortgage. KingSett Capital is currently the largest shareholder, with 12% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.4% and 0.9%, of the shares outstanding, respectively. Glenn Dore, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
On studying our ownership data, we found that 22 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of MCAN Mortgage
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can report that insiders do own shares in MCAN Mortgage Corporation. In their own names, insiders own CA$28m worth of stock in the CA$578m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public -- including retail investors -- own 83% of MCAN Mortgage. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand MCAN Mortgage better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with MCAN Mortgage (including 1 which is a bit concerning) .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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