Alkane Resources Limited's (ASX:ALK) largest shareholders are retail investors who were rewarded as market cap surged AU$42m last week
In This Article:
Key Insights
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Significant control over Alkane Resources by retail investors implies that the general public has more power to influence management and governance-related decisions
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43% of the business is held by the top 25 shareholders
If you want to know who really controls Alkane Resources Limited (ASX:ALK), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 57% ownership. 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 AU$42m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Alkane Resources.
See our latest analysis for Alkane Resources
What Does The Institutional Ownership Tell Us About Alkane Resources?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Alkane Resources does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Alkane Resources' earnings history below. Of course, the future is what really matters.
Alkane Resources is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Abbotsleigh Pty Ltd. with 9.4% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.8% and 3.6%, of the shares outstanding, respectively. Additionally, the company's CEO Nicholas Earner directly holds 0.9% of the total shares outstanding.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Alkane Resources
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.