The large shareholder groups of Silver Lake Resources Limited (ASX: SLR) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in the number of insiders in companies that were previously state-owned.
Silver Lake Resources isn’t huge, but it’s not particularly small either. It has a market capitalization of A $ 1.7 billion, which means that it generally expects certain institutions to be listed in the share register. In the graph below, we can see that the institutions hold shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Silver Lake Resources.
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What does institutional ownership tell us about the Silver Lake resources?
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 businesses to have some institutions listed, especially if they are growing.
Silver Lake Resources already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see the historical revenue and revenue for Silver Lake Resources below, but keep in mind that there is always more to tell.
Silver Lake Resources is not owned by hedge funds. Van Eck Associates Corporation is currently the largest shareholder, with 11% of the shares outstanding. Meanwhile, the second and third shareholders hold 6.4% and 4.9% of the outstanding shares, respectively.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. The title is covered by analysts, but it could become even more famous over time.
Insider Ownership of Silver Lake Resources
The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own less than 1% of Silver Lake Resources Limited in their own name. However, it is possible that insiders will have an indirect interest through a more complex structure. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own AU $ 2.7 million in shares. It’s good to see board members owning stocks, but it might be worth checking out if those insiders have bought.
General public property
The general public collectively owns 53% of the shares of Silver Lake Resources. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
I find it very interesting to see who exactly owns a company. But to really gain insight, we have to take other information into account as well. Concrete example: we have spotted 2 warning signs for Silver Lake Resources you must be aware.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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