The large shareholder groups of Belo Sun Mining Corp (TSE: BSX) have power over the company. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
Belo Sun Mining is a small company with a market cap of C $ 320 million, so it may still go under the radar of many institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s dig deeper into each type of owner, to find out more about Belo Sun Mining.
Check out our latest analysis for Belo Sun Mining
What does institutional ownership tell us about Belo Sun Mining?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Belo Sun Mining has institutional investors; and they own a large portion of the company’s shares. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Belo Sun Mining’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
It appears that 24% of Belo Sun Mining’s shares are controlled by hedge funds. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Sun Valley Gold LLC is currently the largest shareholder in the company with 24% of the shares outstanding. With 4.1% and 3.5% of the shares outstanding, respectively, RBC Global Asset Management Inc. and Peter Tagliamonte are the second and third largest shareholders. Peter Tagliamonte, who is the third shareholder, also holds the title of member of the board of directors.
A closer look at our ownership data shows that the 23 largest shareholders collectively own less than half of the ledger, suggesting a large group of small holders where no shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. The title is covered by analysts, but it could become even more famous over time.
Insider property of Belo Sun Mining
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
We can see that the insiders own shares of Belo Sun Mining Corp. As individuals, insiders collectively own C $ 21 million worth of the company of C $ 320 million. It’s good to see some investing from insiders, but it might be worth checking out if those insiders have bought.
General public property
The general public collectively owns 59% of the shares of Belo Sun Mining. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Belo Sun Mining, there are many other factors that we need to take into account. Take risks for example – Belo Sun Mining has 3 warning signs (and 1 which is significant) we think you should be aware of.
But finally it’s the future, not the past, which will determine how well the owners of this business fare. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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