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What Kind Of Investors Own Most Of Gold Standard Ventures Corp (TSE:GSV)?

A look at the shareholders of Gold Standard Ventures Corp (TSE:GSV) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Gold Standard Ventures is not a large company by global standards. It has a market capitalization of CA$327m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Gold Standard Ventures.

See our latest analysis for Gold Standard Ventures

TSX:GSV Ownership Breakdown July 11th 2020
TSX:GSV Ownership Breakdown July 11th 2020

What Does The Institutional Ownership Tell Us About Gold Standard Ventures?

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.

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As you can see, institutional investors have a fair amount of stake in Gold Standard Ventures. 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 Gold Standard Ventures's historic earnings and revenue, below, but keep in mind there's always more to the story.

TSX:GSV Earnings and Revenue Growth July 11th 2020
TSX:GSV Earnings and Revenue Growth July 11th 2020

We note that hedge funds don't have a meaningful investment in Gold Standard Ventures. Looking at our data, we can see that the largest shareholder is Newmont Corporation with 12% of shares outstanding. With 11% and 7.3% of the shares outstanding respectively, FCMI Financial Corp., Asset Management Arm and FMR LLC are the second and third largest shareholders. In addition, we found that Jonathan Awde, the CEO has 1.2% of the shares allocated to his name

After doing some more digging, we found that the top 12 have the combined ownership of 50% in the company, suggesting that no one share holder has significant control over the company.

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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Gold Standard Ventures

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

We can see that insiders own shares in Gold Standard Ventures Corp. In their own names, insiders own CA$6.5m worth of stock in the CA$327m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public have some degree of sway over GSV. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 13% of GSV. 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. For example, we've discovered 3 warning signs for Gold Standard Ventures (1 is concerning!) that you should be aware of before investing here.

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.

This article by Simply Wall St is general in nature. 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.

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