Australia markets close in 5 hours 36 minutes
  • ALL ORDS

    7,738.10
    +47.90 (+0.62%)
     
  • ASX 200

    7,423.90
    +49.00 (+0.66%)
     
  • AUD/USD

    0.7476
    -0.0001 (-0.01%)
     
  • OIL

    83.00
    +0.04 (+0.05%)
     
  • GOLD

    1,768.70
    -1.80 (-0.10%)
     
  • BTC-AUD

    85,970.79
    +2,537.22 (+3.04%)
     
  • CMC Crypto 200

    1,481.22
    +17.87 (+1.22%)
     
  • AUD/EUR

    0.6424
    +0.0004 (+0.06%)
     
  • AUD/NZD

    1.0449
    +0.0002 (+0.02%)
     
  • NZX 50

    13,117.24
    +51.32 (+0.39%)
     
  • NASDAQ

    15,410.72
    +109.83 (+0.72%)
     
  • FTSE

    7,217.53
    +13.70 (+0.19%)
     
  • Dow Jones

    35,457.31
    +198.70 (+0.56%)
     
  • DAX

    15,515.83
    +41.36 (+0.27%)
     
  • Hang Seng

    25,787.21
    +377.46 (+1.49%)
     
  • NIKKEI 225

    29,215.52
    +190.06 (+0.65%)
     

What Kind Of Shareholders Hold The Majority In Canadian Solar Inc.'s (NASDAQ:CSIQ) Shares?

  • Oops!
    Something went wrong.
    Please try again later.
·4-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

The big shareholder groups in Canadian Solar Inc. (NASDAQ:CSIQ) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Canadian Solar has a market capitalization of US$2.1b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Canadian Solar.

View our latest analysis for Canadian Solar

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Canadian Solar?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Canadian Solar 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Canadian Solar's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

Canadian Solar is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Xiaohua Qu with 23% of shares outstanding. With 8.5% and 5.1% of the shares outstanding respectively, BlackRock, Inc. and Invesco Capital Management LLC are the second and third largest shareholders.

After doing some more digging, we found that the top 11 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Canadian Solar

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Canadian Solar Inc.. Insiders own US$488m worth of shares in the US$2.1b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 28% ownership, the general public have some degree of sway over Canadian Solar. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Canadian Solar (1 is potentially serious) that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting