Individual investors account for 56% of Alkane Resources Limited's (ASX:ALK) ownership, while private companies account for 23%
In This Article:
Key Insights
-
Significant control over Alkane Resources by individual investors implies that the general public has more power to influence management and governance-related decisions
-
The top 25 shareholders own 44% of the company
-
11% of Alkane Resources is held by insiders
Every investor in Alkane Resources Limited (ASX:ALK) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).
Private companies, on the other hand, account for 23% of the company's stockholders.
Let's delve deeper into each type of owner of Alkane Resources, beginning with the chart below.
See our latest analysis for Alkane Resources
What Does The Institutional Ownership Tell Us About Alkane Resources?
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.
Alkane Resources 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. 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 Alkane Resources, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Alkane Resources. Abbotsleigh Pty Ltd. is currently the largest shareholder, with 11% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.8% and 3.7% of the stock. In addition, we found that Nicholas Earner, the CEO has 0.9% of the shares allocated to their name.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.