Yahoo Finance Hedge funds investors own a significant stake of 44% in Aldebaran Resources Inc. (CVE:ALDE)
Key Insights
Significantly high institutional ownership implies Aldebaran Resources' stock price is sensitive to their trading actions
The top 2 shareholders own 59% of the company
Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
Every investor in Aldebaran Resources Inc. (CVE:ALDE) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are hedge funds with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Because hedge funds owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's take a closer look to see what the different types of shareholders can tell us about Aldebaran Resources.
See our latest analysis for Aldebaran Resources
What Does The Lack Of Institutional Ownership Tell Us About Aldebaran Resources?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Aldebaran Resources might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
It would appear that 44% of Aldebaran Resources shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Route One Investment Company, L.P. is currently the largest shareholder, with 44% of shares outstanding. South32 Limited is the second largest shareholder owning 15% of common stock, and Sibanye Stillwater Limited holds about 14% of the company stock. In addition, we found that John Black, the CEO has 1.3% of the shares allocated to their name.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Aldebaran 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in Aldebaran Resources Inc.. In their own names, insiders own CA$7.6m worth of stock in the CA$144m company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 21% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Public Company Ownership
It appears to us that public companies own 29% of Aldebaran Resources. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Aldebaran Resources is showing 3 warning signs in our investment analysis , and 2 of those are a bit concerning...
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.
