key insights
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Capricorn Metals's high retail investor ownership suggests that important decisions are influenced by general shareholders.
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A total of 25 investors hold a majority stake in the company, holding 49% of the ownership.
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Insiders are selling lately
Every investor in Capricorn Metals Ltd (ASX:CMM) should be aware of the most powerful shareholder groups. The group that owns the most shares in the company (about 45% to be exact) are retail investors. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Meanwhile, institutional investors have an ownership of 36% in the company. Institutions often own shares in more established companies, while it's not uncommon to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Capricorn Metals, starting with the chart below.
Check out our latest analysis for Capricorn Metal.
What does institutional ownership tell us about Capricorn Metals?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
Capricorn Metals already has a share registry. In fact, they own a significant stake in the company. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. 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 Capricorn Metals, (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don't have many shares in Capricorn Metals. According to our data, Paradise Investment Management Pty Ltd is his largest shareholder with 6.7% of shares outstanding. For context, the second largest shareholder holds about 5.1% of the shares outstanding, followed by an ownership of 4.6% by the third largest shareholder. Mark Clark, the third largest shareholder, also holds the title of Chairman of the Board. Additionally, CEO Kim Massey directly holds 0.6% of the total outstanding shares.
Our research shows that the top 25 shareholders collectively control less than half of the company's shares. This means that the company's shares are widely distributed and there is no dominant shareholder.
Researching institutional ownership is a good way to assess and filter a stock's expected performance. The same can be done by studying analyst sentiment. There are a significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.
Insider ownership in Capricorn Metal
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
Insider ownership is positive when it signals leaders 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 depending on the situation.
Our information suggests that insiders maintain a significant stake in Capricorn Metals Ltd. It's very interesting to see that insiders say he owns AU$213m worth of shares in this AU$1.7b business. It's good to see this level of investment. Here you can see if insiders have been buying recently.
Public ownership
The general public, typically retail investors, owns 45% of Capricorn Metals' shares. While this group doesn't necessarily call the shots, it can certainly have a big influence on how the company is run.
Private company ownership
Our data shows that Private companies own 5.8% of the company's shares. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. For example, we identified 3 Warning Signs for Capricorn Metals What you need to know.
But in the end it's the futureIt, not the past, determines how well the owner of this business will do. So we might consider this free report showing whether analysts are predicting a bright future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
