Yahoo Finance Insiders still control 60% of Copper Fox Metals Inc. (CVE:CUU) despite recent sales
Key Insights
Insiders appear to have a vested interest in Copper Fox Metals' growth, as seen by their sizeable ownership
57% of the company is held by a single shareholder (Ernesto Echavarria)
Every investor in Copper Fox Metals Inc. (CVE:CUU) should be aware of the most powerful shareholder groups. With 60% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Despite recent sales, insiders own the most shares in the company. As a result, they stand to gain the most after the stock gained 11% in the past week.
Let's take a closer look to see what the different types of shareholders can tell us about Copper Fox Metals.
Check out our latest analysis for Copper Fox Metals
What Does The Lack Of Institutional Ownership Tell Us About Copper Fox Metals?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Copper Fox Metals, for yourself, below.
Hedge funds don't have many shares in Copper Fox Metals. Ernesto Echavarria is currently the company's largest shareholder with 57% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 1.1% and 1.1% of the shares outstanding respectively, R. Mackay-Dunn and Elmer Stewart are the second and third largest shareholders. Elmer Stewart, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Copper Fox Metals
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
Our information suggests that insiders own more than half of Copper Fox Metals Inc.. This gives them effective control of the company. So they have a CA$83m stake in this CA$140m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Copper Fox Metals. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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. Case in point: We've spotted 2 warning signs for Copper Fox Metals you should be aware of.
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.
