In This Article:
Key Insights
-
Insiders appear to have a vested interest in Atlas Lithium's growth, as seen by their sizeable ownership
-
52% of the business is held by the top 4 shareholders
A look at the shareholders of Atlas Lithium Corporation (NASDAQ:ATLX) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 41% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders were the biggest beneficiaries of last week’s 21% gain.
In the chart below, we zoom in on the different ownership groups of Atlas Lithium.
View our latest analysis for Atlas Lithium
What Does The Institutional Ownership Tell Us About Atlas Lithium?
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 Atlas Lithium. 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 Atlas Lithium'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 Atlas Lithium. The company's CEO Marc Fogassa is the largest shareholder with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 5.2% of the stock.
On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Atlas Lithium
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.