Key Insights

• Significant control over Aura Minerals by private companies implies that the general public has more power to influence management and governance-related decisions

• The largest shareholder of the company is Bergnol Holding Ltd with a 55% stake

• Insiders have sold recently

To get a sense of who is truly in control of Aura Minerals Inc. (TSE:ORA), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 24% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Aura Minerals.

View our latest analysis for Aura Minerals

What Does The Institutional Ownership Tell Us About Aura Minerals?

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.

We can see that Aura Minerals 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. 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 Aura Minerals' historic earnings and revenue below, but keep in mind there's always more to the story.

Aura Minerals is not owned by hedge funds. Bergnol Holding Ltd is currently the largest shareholder, with 55% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 5.2% and 3.1%, of the shares outstanding, respectively.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Aura Minerals

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.