With 59% ownership, Regis Resources Limited (ASX:RRL) boasts of strong institutional backing

In This Article:

Key Insights

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

  • 51% of the business is held by the top 12 shareholders

  • Insiders have bought recently

A look at the shareholders of Regis Resources Limited (ASX:RRL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of Regis Resources, beginning with the chart below.

View our latest analysis for Regis Resources

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Regis 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 Regis 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. 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 Regis Resources' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Regis Resources. Looking at our data, we can see that the largest shareholder is Van Eck Associates Corporation with 9.1% of shares outstanding. For context, the second largest shareholder holds about 6.0% of the shares outstanding, followed by an ownership of 5.6% by the third-largest shareholder.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.