Advertisement
UK markets close in 5 hours 7 minutes
  • FTSE 100

    8,371.22
    +0.89 (+0.01%)
     
  • FTSE 250

    20,714.76
    +4.69 (+0.02%)
     
  • AIM

    804.37
    +0.50 (+0.06%)
     
  • GBP/EUR

    1.1732
    -0.0015 (-0.13%)
     
  • GBP/USD

    1.2725
    +0.0005 (+0.04%)
     
  • Bitcoin GBP

    54,797.82
    -287.70 (-0.52%)
     
  • CMC Crypto 200

    1,499.23
    -3.43 (-0.23%)
     
  • S&P 500

    5,307.01
    -14.40 (-0.27%)
     
  • DOW

    39,671.04
    -201.95 (-0.51%)
     
  • CRUDE OIL

    78.24
    +0.67 (+0.86%)
     
  • GOLD FUTURES

    2,368.40
    -24.50 (-1.02%)
     
  • NIKKEI 225

    39,103.22
    +486.12 (+1.26%)
     
  • HANG SENG

    18,868.71
    -326.89 (-1.70%)
     
  • DAX

    18,718.92
    +38.72 (+0.21%)
     
  • CAC 40

    8,101.28
    +9.17 (+0.11%)
     

With 56% institutional ownership, Atalaya Mining Plc (LON:ATYM) is a favorite amongst the big guns

Key Insights

  • Significantly high institutional ownership implies Atalaya Mining's stock price is sensitive to their trading actions

  • The top 5 shareholders own 52% of the company

  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in Atalaya Mining Plc (LON:ATYM) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 56% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

ADVERTISEMENT

Let's delve deeper into each type of owner of Atalaya Mining, beginning with the chart below.

See our latest analysis for Atalaya Mining

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Atalaya 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 Atalaya Mining. 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. 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 Atalaya Mining's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

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 Atalaya Mining. Looking at our data, we can see that the largest shareholder is Farringford Foundation with 22% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 6.0% of the stock.

On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Atalaya Mining

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Atalaya Mining Plc. However, it's possible that insiders might have an indirect interest through a more complex structure. It has a market capitalization of just UK£602m, and the board has only UK£2.8m worth of shares in their own names. 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 15% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 28%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.