With 32% ownership, Mandalay Resources Corporation (TSE:MND) has piqued the interest of institutional investors

In This Article:

Key Insights

  • Significantly high institutional ownership implies Mandalay Resources' stock price is sensitive to their trading actions

  • 62% of the business is held by the top 3 shareholders

  • Insiders have sold recently

A look at the shareholders of Mandalay Resources Corporation (TSE:MND) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 32% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

In the chart below, we zoom in on the different ownership groups of Mandalay Resources.

Check out our latest analysis for Mandalay Resources

ownership-breakdown
TSX:MND Ownership Breakdown October 10th 2024

What Does The Institutional Ownership Tell Us About Mandalay Resources?

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.

As you can see, institutional investors have a fair amount of stake in Mandalay Resources. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Mandalay Resources, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TSX:MND Earnings and Revenue Growth October 10th 2024

It looks like hedge funds own 18% of Mandalay Resources shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is Plinian Capital LLP with 25% of shares outstanding. The second and third largest shareholders are Ruffer LLP and GMT Capital Corp., with an equal amount of shares to their name at 19%.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.