Institutional investors are Mako Mining Corp.'s (CVE:MKO) biggest bettors and were rewarded after last week's CA$51m market cap gain

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

Mon, Jan 6, 2025, 4:50 AM 4 min read

Institutions' substantial holdings in Mako Mining implies that they have significant influence over the company's share price
The top 2 shareholders own 50% of the company
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Mako Mining Corp. (CVE:MKO) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for institutional investors after the company gained CA$51m in market cap last week. The one-year return on investment is currently 45% and last week's gain would have been more than welcomed.

Let's delve deeper into each type of owner of Mako Mining, beginning with the chart below.

View our latest analysis for Mako Mining

ownership-breakdown — TSXV:MKO Ownership Breakdown January 6th 2025

What Does The Institutional Ownership Tell Us About Mako Mining?

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.

Mako Mining already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Mako Mining's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — TSXV:MKO Earnings and Revenue Growth January 6th 2025

Mako Mining is not owned by hedge funds. Wexford Capital LP is currently the largest shareholder, with 48% of shares outstanding. In comparison, the second and third largest shareholders hold about 2.3% and 0.8% of the stock. Akiba Leisman, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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.

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. 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 Mako Mining

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can report that insiders do own shares in Mako Mining Corp.. In their own names, insiders own CA$8.8m worth of stock in the CA$273m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mako Mining. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Mako Mining you should be aware of.

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.

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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.