Key Insights

• The considerable ownership by individual investors in Lundin Mining indicates that they collectively have a greater say in management and business strategy

• 48% of the business is held by the top 25 shareholders

• Recent purchases by insiders

Every investor in Lundin Mining Corporation (TSE:LUN) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that benefitted the most from last week’s CA$427m market cap gain, institutions too had a 37% share in those profits.

Let's delve deeper into each type of owner of Lundin Mining, beginning with the chart below.

See our latest analysis for Lundin Mining

What Does The Institutional Ownership Tell Us About Lundin Mining?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Lundin Mining already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Lundin Mining's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Lundin Mining. Our data shows that Nemesia S.à R.L. is the largest shareholder with 15% of shares outstanding. With 10% and 4.9% of the shares outstanding respectively, Capital Research and Management Company and FMR LLC are the second and third largest shareholders.

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 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 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 Lundin Mining

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.