Kore Potash plc's (LON:KP2) market cap surged UK￡50m last week, retail investors who have a lot riding on the company were rewarded
In This Article:
Key Insights
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Significant control over Kore Potash by retail investors implies that the general public has more power to influence management and governance-related decisions
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53% of the business is held by the top 5 shareholders
If you want to know who really controls Kore Potash plc (LON:KP2), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 24% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, retail investors collectively scored the highest last week as the company hit UK￡95m market cap following a 108% gain in the stock.
In the chart below, we zoom in on the different ownership groups of Kore Potash.
View our latest analysis for Kore Potash
What Does The Institutional Ownership Tell Us About Kore Potash?
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.
Kore Potash already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Kore Potash's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Kore Potash. Oman Investment Authority is currently the company's largest shareholder with 16% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 8.7% by the third-largest shareholder. David Hathorn, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
On looking further, we found that 53% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.