Retail investors account for 52% of NextSource Materials Inc.'s (TSE:NEXT) ownership, while institutions account for 47%
In This Article:
Key Insights
-
The considerable ownership by retail investors in NextSource Materials indicates that they collectively have a greater say in management and business strategy
-
The top 9 shareholders own 48% of the company
To get a sense of who is truly in control of NextSource Materials Inc. (TSE:NEXT), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutions, on the other hand, account for 47% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
In the chart below, we zoom in on the different ownership groups of NextSource Materials.
View our latest analysis for NextSource Materials
What Does The Institutional Ownership Tell Us About NextSource Materials?
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.
NextSource Materials already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 NextSource Materials, (below). Of course, keep in mind that there are other factors to consider, too.
NextSource Materials is not owned by hedge funds. Vision Blue Resources Ltd. is currently the largest shareholder, with 47% of shares outstanding. With 0.7% and 0.3% of the shares outstanding respectively, Brett Whalen and Marc Johnson are the second and third largest shareholders.
On studying our ownership data, we found that 9 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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 is some analyst coverage of the stock, but it could still become more well known, with time.