Market cap

A C$93 million drop in the market capitalization of Maple Leaf Foods Inc. (TSE:MFI) is not what insiders like to see after recently buying shares

If you want to know who really controls Maple Leaf Foods Inc. (TSE:MFI), then you’ll need to look at the composition of its share register. And the group that holds the biggest slice of the pie are individual insiders with 40% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

A quick look at our data suggests that insiders have been buying shares of the company recently. However, with the stock price down 3.2% last week, they must be disappointed.

Let’s take a closer look at what different types of shareholders can tell us about Maple Leaf Foods.

However, if you prefer to see where opportunities and risks are within the MFI industryyou can consult our analysis on the CA Food industry.

TSX: MFI Ownership Breakdown as of September 20, 2022

What does institutional ownership tell us about Maple Leaf Foods?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Maple Leaf Foods already has institutions on the stock register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Maple Leaf Foods’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSX: MFI earnings and revenue growth September 20, 2022

Maple Leaf Foods does not belong to hedge funds. With a 39% stake, CEO Michael McCain is the largest shareholder. RBC Global Asset Management Inc. is the second-largest shareholder, holding 8.4% of the common stock, and The Vanguard Group, Inc. owns approximately 2.1% of the company’s stock.

Our research also brought to light the fact that approximately 52% of the company is controlled by the 4 major shareholders, suggesting that these owners wield significant influence over the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Maple Leaf Foods Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Maple Leaf Foods Inc. The company has a market capitalization of just C$2.8 billion and insiders own C$1.1 billion of stock in their own name. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

The general public, including retail investors, owns 34% of the company’s shares and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. For example, we have identified 4 warning signs for Maple Leaf Foods (2 are concerning) that you should be aware of.

At the end of the day 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 using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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

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