Institutions along with retail investors who hold considerable shares inSandstorm Gold Ltd. (TSE:SSL) come under pressure; lose 8.7% of holdings value
Key Insights
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Sandstorm Gold's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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50% of the business is held by the top 24 shareholders
If you want to know who really controls Sandstorm Gold Ltd. (TSE:SSL), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 42% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While institutions who own 41% came under pressure after market cap dropped to CA$1.6b last week,retail investors took the most losses.
In the chart below, we zoom in on the different ownership groups of Sandstorm Gold.
See our latest analysis for Sandstorm Gold
What Does The Institutional Ownership Tell Us About Sandstorm Gold?
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 Sandstorm Gold. 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 Sandstorm Gold's historic earnings and revenue below, but keep in mind there's always more to the story.
Sandstorm Gold is not owned by hedge funds. Our data shows that Orion Resource Partners is the largest shareholder with 16% of shares outstanding. For context, the second largest shareholder holds about 9.7% of the shares outstanding, followed by an ownership of 4.8% by the third-largest shareholder.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 24 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.