With 60% ownership of the shares, Ecora Resources PLC (LON:ECOR) is heavily dominated by institutional owners
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Ecora Resources' stock price might be vulnerable to their trading decisions
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The top 11 shareholders own 52% of the company
A look at the shareholders of Ecora Resources PLC (LON:ECOR) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of Ecora Resources.
Check out our latest analysis for Ecora Resources
What Does The Institutional Ownership Tell Us About Ecora 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.
As you can see, institutional investors have a fair amount of stake in Ecora Resources. 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 Ecora Resources' historic earnings and revenue below, but keep in mind there's always more to the story.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Ecora Resources. Looking at our data, we can see that the largest shareholder is South32 Limited with 18% of shares outstanding. Aberforth Partners LLP is the second largest shareholder owning 8.1% of common stock, and Schroder Investment Management Limited holds about 5.8% of the company stock.
After doing some more digging, we found that the top 11 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.