Could The Horizonte Minerals Plc (LON:HZM) Ownership Structure Tell Us Something Useful?
In This Article:
If you want to know who really controls Horizonte Minerals Plc (LON:HZM), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
Horizonte Minerals is not a large company by global standards. It has a market capitalization of UK£134m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Horizonte Minerals.
See our latest analysis for Horizonte Minerals
What Does The Institutional Ownership Tell Us About Horizonte 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.
We can see that Horizonte Minerals does have institutional investors; and they hold a good portion of the company's stock. 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 Horizonte Minerals' historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Horizonte Minerals. Teck Resources Limited is currently the company's largest shareholder with 15% of shares outstanding. With 10% and 6.1% of the shares outstanding respectively, Hargreave Hale Limited, Asset Management Arm and HBOS Investment Fund Managers Limited are the second and third largest shareholders.
On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.