Could The Pantheon Resources Plc (LON:PANR) Ownership Structure Tell Us Something Useful?

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If you want to know who really controls Pantheon Resources Plc (LON:PANR), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

Pantheon Resources is a smaller company with a market capitalization of UK£105m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about PANR.

Check out our latest analysis for Pantheon Resources

AIM:PANR Ownership Summary, June 7th 2019
AIM:PANR Ownership Summary, June 7th 2019

What Does The Institutional Ownership Tell Us About Pantheon 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.

Pantheon Resources already has institutions on the share registry. Indeed, they own 57% of the company. 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. 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 Pantheon Resources's earnings history, below. Of course, the future is what really matters.

AIM:PANR Income Statement, June 7th 2019
AIM:PANR Income Statement, June 7th 2019

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It looks like hedge funds own 23% of Pantheon Resources shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Pantheon Resources

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. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.