Key Insights

• Significant control over Northern Minerals by retail investors implies that the general public has more power to influence management and governance-related decisions

• A total of 18 investors have a majority stake in the company with 51% ownership

• 19% of Northern Minerals is held by insiders

To get a sense of who is truly in control of Northern Minerals Limited (ASX:NTU), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 49% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Private companies, on the other hand, account for 29% of the company's stockholders.

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

See our latest analysis for Northern Minerals

What Does The Institutional Ownership Tell Us About Northern 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.

Less than 5% of Northern Minerals is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Northern Minerals is not owned by hedge funds. Yuxiao Fund Pte Ltd is currently the company's largest shareholder with 9.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.3% and 4.2%, of the shares outstanding, respectively.

A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Northern 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. 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.