Nasdaq
华尔街日报Institutional investors may overlook KEFI Gold and Copper Plc's (LON:KEFI) recent UK£13m market cap drop as long-term gains remain positive
Key Insights
- Given the large stake in the stock by institutions, KEFI Gold and Copper's stock price might be vulnerable to their trading decisions
- The top 5 shareholders own 51% of the company
- Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of KEFI Gold and Copper Plc (LON:KEFI) can tell us which group is most powerful. The group holding the most number of shares in the company, around 74% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
Losing money on investments is something no shareholder enjoys, least of all institutional investors who saw their holdings value drop by 11% last week. However, the 141% one-year returns may have helped alleviate their overall losses. We would assume however, that they would be on the lookout for weakness in the future.
Let's take a closer look to see what the different types of shareholders can tell us about KEFI Gold and Copper.
View our latest analysis for KEFI Gold and Copper
What Does The Institutional Ownership Tell Us About KEFI Gold and Copper?
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 KEFI Gold and Copper. 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. 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 KEFI Gold and Copper's earnings history below. Of course, the future is what really matters.
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 KEFI Gold and Copper. Hargreaves Lansdown Asset Management Ltd. is currently the company's largest shareholder with 22% of shares outstanding. Aberdeen Group Plc is the second largest shareholder owning 16% of common stock, and HBOS Investment Fund Managers Limited holds about 5.3% of the company stock. In addition, we found that Aristidis Anagnostaras-Adams, the CEO has 1.2% of the shares allocated to their name.
Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of KEFI Gold and Copper
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in KEFI Gold and Copper Plc. It has a market capitalization of just UK£112m, and insiders have UK£2.4m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
General Public Ownership
With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over KEFI Gold and Copper. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand KEFI Gold and Copper better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with KEFI Gold and Copper (including 3 which are concerning) .
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.