Yahoo Finance Dolly Varden Silver Corporation's (CVE:DV) largest shareholders are individual investors who were rewarded as market cap surged CA$43m last week
Key Insights
The considerable ownership by individual investors in Dolly Varden Silver indicates that they collectively have a greater say in management and business strategy
A total of 5 investors have a majority stake in the company with 51% ownership
Every investor in Dolly Varden Silver Corporation (CVE:DV) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 47% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, individual investors collectively scored the highest last week as the company hit CA$283m market cap following a 16% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Dolly Varden Silver.
View our latest analysis for Dolly Varden Silver
What Does The Institutional Ownership Tell Us About Dolly Varden Silver?
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.
As you can see, institutional investors have a fair amount of stake in Dolly Varden Silver. 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. 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 Dolly Varden Silver'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 Dolly Varden Silver. Fury Gold Mines Limited is currently the company's largest shareholder with 19% of shares outstanding. Hecla Mining Company is the second largest shareholder owning 15% of common stock, and Eric Sprott holds about 10.0% of the company stock.
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 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Dolly Varden Silver
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 information suggests that insiders maintain a significant holding in Dolly Varden Silver Corporation. It has a market capitalization of just CA$283m, and insiders have CA$29m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dolly Varden Silver. 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.
Public Company Ownership
Public companies currently own 34% of Dolly Varden Silver stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Dolly Varden Silver has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.
