Rainbow Rare Earths Limited (LON:RBW) most popular amongst retail investors who own 55%, insiders hold 27%
In This Article:
Key Insights
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Significant control over Rainbow Rare Earths by retail investors implies that the general public has more power to influence management and governance-related decisions
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45% of the business is held by the top 13 shareholders
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Insider ownership in Rainbow Rare Earths is 27%
If you want to know who really controls Rainbow Rare Earths Limited (LON:RBW), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 55% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual insiders, on the other hand, account for 27% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Rainbow Rare Earths.
See our latest analysis for Rainbow Rare Earths
What Does The Institutional Ownership Tell Us About Rainbow Rare Earths?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Since institutions own only a small portion of Rainbow Rare Earths, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don't have a meaningful investment in Rainbow Rare Earths. Our data shows that Adonis Pouroulis is the largest shareholder with 13% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 5.8% of the stock. George Sidney Bennett, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A deeper look at our ownership data shows that the top 13 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.