key insights
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Gold Road Resources is majority owned by retail investors, suggesting that key decisions are influenced by general shareholders.
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The top 25 shareholders own 43% of the company
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44% of Gold Road Resources is institutionally owned
If you want to know who really controls Gold Road Resources Limited (ASX:GOR), you’ll have to take a look at the makeup of its share registry. Individual investors hold 51% of the shares, making them the largest holders of the company. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Retail investors benefited the most after the market capitalization reached A$1.9 billion last week, but institutional investors, who own 44%, also benefited.
Let’s take a closer look to see what different types of shareholders can tell us about Gold Road Resources.
See our latest analysis on Gold Road Resources.
What does institutional ownership tell us about Gold Road’s resources?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
We can see that Gold Road Resources does have institutional investors. And they own a significant portion of the company’s stock. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Gold Road Resources, (below). Of course, keep in mind that there are other factors to consider as well.
Note that hedge funds don’t have a meaningful investment in Gold Road Resources. Van Eck Associates Corporation is currently the company’s largest shareholder with his 10% of outstanding shares. Meanwhile, the second and third largest shareholders hold 5.0% and 2.7% of the shares outstanding, respectively.
A closer look at our ownership data reveals that the top 25 shareholders collectively own less than half of the register, with a large number of smaller shareholders with no single shareholder controlling the majority. This suggests that it is a group of people.
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. Quite a few analysts cover this stock, so you can find out its expected growth quite easily.
Insider ownership of Gold Road resources
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
We can report that insiders own shares in Gold Road Resources Limited. This is a big company, so it’s good to see this level of collaboration. Insiders say he owns AU$30m worth of shares (at current prices). It’s good to see this level of investment by insiders. Here you can see if insiders have been buying recently.
Open to the public
The general public, mostly retail investors, owns 51% of Gold Road Resources shares. This level of ownership gives retail investors a degree of power to influence important policy decisions such as board composition, executive compensation, and dividend payout ratios.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeper Analyze how a company has performed in the past. Click here for past revenue and profits. Detailed graph.
If you’re like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
