In This Article:
Key Insights
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Significantly high institutional ownership implies Ramelius Resources' stock price is sensitive to their trading actions
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The top 15 shareholders own 51% of the company
Every investor in Ramelius Resources Limited (ASX:RMS) should be aware of the most powerful shareholder groups. With 58% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's take a closer look to see what the different types of shareholders can tell us about Ramelius Resources.
View our latest analysis for Ramelius Resources
What Does The Institutional Ownership Tell Us About Ramelius Resources?
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.
We can see that Ramelius Resources does have institutional investors; and they hold a good portion of the company's stock. 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 Ramelius Resources' historic earnings and revenue below, but keep in mind there's always more to the story.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Ramelius Resources is not owned by hedge funds. Our data shows that Van Eck Associates Corporation is the largest shareholder with 10% of shares outstanding. The second and third largest shareholders are Dimensional Fund Advisors LP and Australian Retirement Trust Pty Ltd, with an equal amount of shares to their name at 5.0%.
A closer look at our ownership figures suggests that the top 15 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.