Yahoo Finance Minsud Resources Corp.'s (CVE:MSR) largest shareholders are retail investors who were rewarded as market cap surged CA$28m last week
Key Insights
Significant control over Minsud Resources by retail investors implies that the general public has more power to influence management and governance-related decisions
A total of 8 investors have a majority stake in the company with 43% ownership
A look at the shareholders of Minsud Resources Corp. (CVE:MSR) can tell us which group is most powerful. The group holding the most number of shares in the company, around 57% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).
Clearly, retail investors benefitted the most after the company's market cap rose by CA$28m last week.
In the chart below, we zoom in on the different ownership groups of Minsud Resources.
View our latest analysis for Minsud Resources
What Does The Lack Of Institutional Ownership Tell Us About Minsud Resources?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
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. Minsud Resources might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Minsud Resources is not owned by hedge funds. Our data shows that Compania de Tierra Sud Argentino S.A. is the largest shareholder with 27% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 2.8% of the stock. Alberto Orcoyen, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A deeper look at our ownership data shows that the top 8 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Minsud Resources
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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of Minsud Resources Corp.. Insiders have a CA$23m stake in this CA$143m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 57% of Minsud Resources shares. 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.
Private Company Ownership
We can see that Private Companies own 27%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Minsud Resources better, we need to consider many other factors. To that end, you should be aware of the 4 warning signs we've spotted with Minsud Resources .
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.
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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.
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