NGEx Minerals Ltd.'s (TSE:NGEX) market cap surged CA$160m last week, retail investors who have a lot riding on the company were rewarded

Wed, Sep 25, 2024, 5:43 AM 4 min read

What Does The Institutional Ownership Tell Us About NGEx Minerals?

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.

NGEx Minerals 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 NGEx Minerals' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in NGEx Minerals. The company's largest shareholder is Nemesia S.à R.L., with ownership of 37%. In comparison, the second and third largest shareholders hold about 3.7% and 2.8% of the stock. Additionally, the company's CEO Wojtek Wodzicki directly holds 1.0% of the total shares outstanding.

After doing some more digging, we found that the top 12 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 NGEx Minerals

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in NGEx Minerals Ltd.. The insiders have a meaningful stake worth CA$59m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over NGEx Minerals. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 37%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand NGEx Minerals better, we need to consider many other factors. Take risks for example - NGEx Minerals has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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NGEx Minerals Ltd.'s (TSE:NGEX) market cap surged CA$160m last week, retail investors who have a lot riding on the company were rewarded

In This Article:

Key Insights

What Does The Institutional Ownership Tell Us About NGEx Minerals?

Insider Ownership Of NGEx Minerals

General Public Ownership

Private Company Ownership

Next Steps:

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