BCI Minerals Limited (ASX:BCI) has caught the attention of institutional investors who hold a sizeable 42% stake

editorial-team@simplywallst.com (Simply Wall St)

Sun, Apr 21, 2024, 6:24 PM 4 min read

If you want to know who really controls BCI Minerals Limited (ASX:BCI), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 42% ownership. 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. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

In the chart below, we zoom in on the different ownership groups of BCI Minerals.

View our latest analysis for BCI Minerals

ownership-breakdown — ASX:BCI Ownership Breakdown April 22nd 2024

What Does The Institutional Ownership Tell Us About BCI Minerals?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

BCI Minerals already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at BCI Minerals' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — ASX:BCI Earnings and Revenue Growth April 22nd 2024

BCI Minerals is not owned by hedge funds. The company's largest shareholder is Australian Capital Equity Pty. Ltd., with ownership of 35%. Meanwhile, the second and third largest shareholders, hold 32% and 9.2%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 BCI Minerals

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can report that insiders do own shares in BCI Minerals Limited. As individuals, the insiders collectively own AU$9.8m worth of the AU$663m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over BCI Minerals. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 36%, of the BCI Minerals stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with BCI Minerals .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Terms

and

Your Privacy Choices

Utah Privacy Notice

News

Life

Entertainment

Finance

Sports

New on Yahoo

Yahoo Finance

BCI Minerals Limited (ASX:BCI) has caught the attention of institutional investors who hold a sizeable 42% stake

In This Article:

Key Insights

What Does The Institutional Ownership Tell Us About BCI Minerals?

Insider Ownership Of BCI Minerals

General Public Ownership

Private Company Ownership

Next Steps:

Recommended Stories