Institutions profited after Canadian Imperial Bank of Commerce's (TSE:CM) market cap rose CA$2.3b last week but individual investors profited the most

Key Insights

• Significant control over Canadian Imperial Bank of Commerce by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 35% of the company
• Institutions own 46% of Canadian Imperial Bank of Commerce

To get a sense of who is truly in control of Canadian Imperial Bank of Commerce (TSE:CM), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 54% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors gained the most after market cap touched CA$50b last week, while institutions who own 46% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Canadian Imperial Bank of Commerce.

View our latest analysis for Canadian Imperial Bank of Commerce

What Does The Institutional Ownership Tell Us About Canadian Imperial Bank of Commerce?

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.

As you can see, institutional investors have a fair amount of stake in Canadian Imperial Bank of Commerce. 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 Canadian Imperial Bank of Commerce's earnings history below. Of course, the future is what really matters.

Canadian Imperial Bank of Commerce is not owned by hedge funds. The company's largest shareholder is BMO Asset Management Corp., with ownership of 6.7%. The Vanguard Group, Inc. is the second largest shareholder owning 3.6% of common stock, and Royal Bank of Canada, Banking & Securities Investments holds about 3.3% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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

Insider Ownership Of Canadian Imperial Bank of Commerce

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that Canadian Imperial Bank of Commerce insiders own under 1% of the company. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own CA$25m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 54% stake in Canadian Imperial Bank of Commerce, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Canadian Imperial Bank of Commerce better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Canadian Imperial Bank of Commerce , and understanding them should be part of your investment process.

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.

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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.