Australia markets close in 1 hour 20 minutes
  • ALL ORDS

    7,438.60
    -49.10 (-0.66%)
     
  • ASX 200

    7,245.90
    -45.40 (-0.62%)
     
  • AUD/USD

    0.6695
    -0.0001 (-0.01%)
     
  • OIL

    74.17
    -0.08 (-0.11%)
     
  • GOLD

    1,783.80
    +1.40 (+0.08%)
     
  • BTC-AUD

    25,455.01
    -161.11 (-0.63%)
     
  • CMC Crypto 200

    401.93
    +0.13 (+0.03%)
     
  • AUD/EUR

    0.6394
    +0.0012 (+0.18%)
     
  • AUD/NZD

    1.0579
    -0.0003 (-0.03%)
     
  • NZX 50

    11,637.48
    +5.88 (+0.05%)
     
  • NASDAQ

    11,549.69
    -237.11 (-2.01%)
     
  • FTSE

    7,521.39
    -46.15 (-0.61%)
     
  • Dow Jones

    33,596.34
    -350.76 (-1.03%)
     
  • DAX

    14,343.19
    -104.42 (-0.72%)
     
  • Hang Seng

    19,457.13
    +15.95 (+0.08%)
     
  • NIKKEI 225

    27,705.77
    -180.10 (-0.65%)
     

Ramelius Resources Limited's (ASX:RMS) market cap dropped AU$85m last week; individual investors who hold 56% were hit as were institutions

If you want to know who really controls Ramelius Resources Limited (ASX:RMS), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 40% shares weren’t spared from last week’s AU$85m market cap drop, individual investors as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of Ramelius Resources.

Check out our latest analysis for Ramelius Resources

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Ramelius Resources?

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.

Ramelius Resources 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. 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 Ramelius Resources' historic earnings and revenue below, but keep in mind there's always more to the story.

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

Ramelius Resources is not owned by hedge funds. Our data shows that Van Eck Associates Corporation is the largest shareholder with 11% of shares outstanding. With 5.0% and 4.7% of the shares outstanding respectively, Dimensional Fund Advisors LP and Ruffer LLP are the second and third largest shareholders. In addition, we found that Mark Zeptner, the CEO has 0.5% of the shares allocated to their name.

On studying our ownership data, we found that 25 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Ramelius Resources

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 some shares in Ramelius Resources Limited. As individuals, the insiders collectively own AU$8.9m worth of the AU$622m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Ramelius Resources shares. 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 Ramelius Resources better, we need to consider many other factors. For example, we've discovered 2 warning signs for Ramelius Resources that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here