key insights
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Significant control over Sayona Mining by private investors means the general public has more power to influence management and governance-related decisions
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Top 25 shareholders own 50% of the company
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Sayona Mining's corporate ownership is 21%
To know who really controls Sayona Mining Limited (ASX:SYA), it's important to understand the business' ownership structure. We can see that the retail investor holds the largest stake in the company, accounting for his 50% ownership. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
And retail investors suffered the biggest losses as stocks fell 24% last week.
Let's delve deeper into each type of owner of Sayona Mining, starting from the image below.
Check out our latest analysis for Sayona Mining.
What does institutional ownership tell us about Sayona Mining?
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.
Sayona Mining already has institutions on the 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. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It is therefore worth checking Sayona Mining's earnings history below. Of course, what really matters is the future.
Note that hedge funds don't have a meaningful investment in Sayona Mining. Piedmont Lithium Inc. is currently his largest shareholder with 22% of the shares outstanding. State Street Global Advisors, Inc. is the second largest shareholder owning 5.0% of the common stock, and The Vanguard Group, Inc. owns approximately 3.6% of the company's stock.
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.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of this stock, but it could become better known over time.
Sayona Mining Insider Ownership
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to know that insiders own shares in Sayona Mining Limited. The insider personally owns AU$22m worth of his shares in the company, with a total value of AU$432m. It's good to see insider investment, so it might be worth checking if those insiders have been buying.
Public ownership
The general public, typically individual investors, own 50% of Sayona Mining's shares. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Public company ownership
It appears to us that public companies own 23% of Sayona Mining. We can't be sure, but it's very possible that this is a strategic interest. Businesses may be similar or aligned.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we identified 3 Warning Signs for Sayona Mining Note (1 is potentially serious).
If you want to know what analysts are predicting in terms of future growth, don't miss this free Report on analyst forecasts.
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.
