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What Kind Of Shareholder Appears On The Mundoro Capital Inc.'s (CVE:MUN) Shareholder Register?

A look at the shareholders of Mundoro Capital Inc. (CVE:MUN) 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 used to be publicly owned tend to have lower insider ownership.

Mundoro Capital is not a large company by global standards. It has a market capitalization of CA$8.3m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about MUN.

View our latest analysis for Mundoro Capital

TSXV:MUN Ownership Summary, August 21st 2019
TSXV:MUN Ownership Summary, August 21st 2019

What Does The Institutional Ownership Tell Us About Mundoro Capital?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

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Mundoro Capital already has institutions on the share registry. Indeed, they own 11% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Mundoro Capital, (below). Of course, keep in mind that there are other factors to consider, too.

TSXV:MUN Income Statement, August 21st 2019
TSXV:MUN Income Statement, August 21st 2019

We note that hedge funds don't have a meaningful investment in Mundoro Capital. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Mundoro Capital

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.

Insider ownership is positive when it signals leadership 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 in some circumstances.

Shareholders would probably be interested to learn that insiders own shares in Mundoro Capital Inc.. It has a market capitalization of just CA$8.3m, and insiders have CA$278k worth of shares, in their own names. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 86% of Mundoro Capital shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.