With 48% ownership in Forsys Metals Corp. (TSE:FSY), hedge funds investors have a lot riding on the business
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Forsys Metals' stock price might be vulnerable to their trading decisions
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A total of 3 investors have a majority stake in the company with 55% ownership
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Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
To get a sense of who is truly in control of Forsys Metals Corp. (TSE:FSY), it is important to understand the ownership structure of the business. With 48% stake, hedge funds possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And as as result, hedge funds investors reaped the most rewards after the company's stock price gained 19% last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 19%.
Let's take a closer look to see what the different types of shareholders can tell us about Forsys Metals.
See our latest analysis for Forsys Metals
What Does The Institutional Ownership Tell Us About Forsys Metals?
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 Forsys Metals. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Forsys Metals, (below). Of course, keep in mind that there are other factors to consider, too.
Our data indicates that hedge funds own 48% of Forsys Metals. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is Leo Fund Managers Limited with 31% of shares outstanding. MM Asset Management Inc is the second largest shareholder owning 17% of common stock, and ALPS Advisors, Inc. holds about 7.3% of the company stock. Additionally, the company's CEO Mark Frewin directly holds 0.6% of the total shares outstanding.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.