Advertisement
Canada markets open in 1 hour 20 minutes
  • S&P/TSX

    22,639.57
    -174.23 (-0.76%)
     
  • S&P 500

    5,427.13
    -128.61 (-2.31%)
     
  • DOW

    39,853.87
    -504.23 (-1.25%)
     
  • CAD/USD

    0.7225
    -0.0020 (-0.28%)
     
  • CRUDE OIL

    76.08
    -1.51 (-1.95%)
     
  • Bitcoin CAD

    88,852.63
    -3,093.23 (-3.36%)
     
  • CMC Crypto 200

    1,308.21
    -29.97 (-2.24%)
     
  • GOLD FUTURES

    2,367.20
    -48.50 (-2.01%)
     
  • RUSSELL 2000

    2,195.37
    -47.90 (-2.14%)
     
  • 10-Yr Bond

    4.2860
    +0.0470 (+1.11%)
     
  • NASDAQ futures

    19,135.50
    -67.75 (-0.35%)
     
  • VOLATILITY

    18.76
    +0.72 (+3.99%)
     
  • FTSE

    8,099.86
    -53.83 (-0.66%)
     
  • NIKKEI 225

    37,869.51
    -1,285.34 (-3.28%)
     
  • CAD/EUR

    0.6656
    -0.0024 (-0.36%)
     

IsoEnergy Ltd.'s (CVE:ISO) largest shareholders are individual investors with 50% ownership, public companies own 35%

Key Insights

  • IsoEnergy's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public

  • 50% of the business is held by the top 24 shareholders

  • Institutional ownership in IsoEnergy is 14%

If you want to know who really controls IsoEnergy Ltd. (CVE:ISO), then you'll have to look at the makeup of its share registry. With 50% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And public companies on the other hand have a 35% ownership in the company.

ADVERTISEMENT

Let's delve deeper into each type of owner of IsoEnergy, beginning with the chart below.

Check out our latest analysis for IsoEnergy

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About IsoEnergy?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

IsoEnergy already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 IsoEnergy's historic earnings and revenue below, but keep in mind there's always more to the story.

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

We note that hedge funds don't have a meaningful investment in IsoEnergy. The company's largest shareholder is NexGen Energy Ltd., with ownership of 33%. With 6.2% and 4.4% of the shares outstanding respectively, ALPS Advisors, Inc. and Mirae Asset Global Investments Co., Ltd. are the second and third largest shareholders.

Our studies suggest that the top 24 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of IsoEnergy

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in IsoEnergy Ltd.. In their own names, insiders own CA$8.2m worth of stock in the CA$782m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 50% of IsoEnergy. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Public Company Ownership

It appears to us that public companies own 35% of IsoEnergy. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - IsoEnergy has 3 warning signs we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.