Yahoo Finance With 48% ownership in Greatland Gold plc (LON:GGP), institutional investors have a lot riding on the business
Key Insights
Given the large stake in the stock by institutions, Greatland Gold's stock price might be vulnerable to their trading decisions
A total of 15 investors have a majority stake in the company with 50% ownership
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
Every investor in Greatland Gold plc (LON:GGP) should be aware of the most powerful shareholder groups. With 48% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And things are looking up for institutional investors after the company gained UK£109m in market cap last week. One-year return to shareholders is currently 28% and last week’s gain was the icing on the cake.
Let's delve deeper into each type of owner of Greatland Gold, beginning with the chart below.
Check out our latest analysis for Greatland Gold
What Does The Institutional Ownership Tell Us About Greatland Gold?
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.
Greatland Gold already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Greatland Gold, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Greatland Gold. Looking at our data, we can see that the largest shareholder is Wyloo Metals Pty Ltd with 8.4% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.1% and 4.9%, of the shares outstanding, respectively.
A closer look at our ownership figures suggests that the top 15 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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. 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 Greatland Gold
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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 data suggests that insiders own under 1% of Greatland Gold plc in their own names. It seems the board members have no more than UK£3.8m worth of shares in the UK£477m company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.
General Public Ownership
The general public, who are usually individual investors, hold a 43% stake in Greatland Gold. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
Private equity firms hold a 8.4% stake in Greatland Gold. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Greatland Gold better, we need to consider many other factors. Take risks for example - Greatland Gold has 4 warning signs (and 1 which can't be ignored) we think you should know about.
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.
