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華爾街日報Individual investors among Bunker Hill Mining Corp.'s (CVE:BNKR) largest stockholders and were hit after last week's 10.0% price drop
Key Insights
- The considerable ownership by individual investors in Bunker Hill Mining indicates that they collectively have a greater say in management and business strategy
- The top 2 shareholders own 52% of the company
- Institutions own 24% of Bunker Hill Mining
Every investor in Bunker Hill Mining Corp. (CVE:BNKR) should be aware of the most powerful shareholder groups. With 43% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, individual investors endured the biggest losses as the stock fell by 10.0%.
Let's delve deeper into each type of owner of Bunker Hill Mining, beginning with the chart below.
View our latest analysis for Bunker Hill Mining
What Does The Institutional Ownership Tell Us About Bunker Hill 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.
As you can see, institutional investors have a fair amount of stake in Bunker Hill Mining. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Bunker Hill Mining's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Bunker Hill Mining. Teck Resources Limited is currently the largest shareholder, with 32% of shares outstanding. With 20% and 3.2% of the shares outstanding respectively, Sprott Inc. and Gilder Gagnon Howe & Co. LLC are the second and third largest shareholders.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Bunker Hill Mining
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of Bunker Hill Mining Corp.. It appears that the board holds about CA$2.3m worth of stock. This compares to a market capitalization of CA$308m. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Public Company Ownership
We can see that public companies hold 32% of the Bunker Hill Mining shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Bunker Hill Mining that you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.