Hecla Mining Company (NYSE:HL) is favoured by institutional owners who hold 67% of the company
In This Article:
Key Insights
-
Significantly high institutional ownership implies Hecla Mining's stock price is sensitive to their trading actions
-
The top 12 shareholders own 51% of the company
Every investor in Hecla Mining Company (NYSE:HL) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 67% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or 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 Hecla Mining, beginning with the chart below.
See our latest analysis for Hecla Mining
What Does The Institutional Ownership Tell Us About Hecla Mining?
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.
Hecla Mining already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since 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 Hecla Mining, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Hecla Mining. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 9.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.4% and 8.1% of the stock.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.