The big shareholder groups in Galaxy Resources Limited (ASX:GXY) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
Galaxy Resources is not a large company by global standards. It has a market capitalization of AU$385m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about GXY.
See our latest analysis for Galaxy Resources
What Does The Institutional Ownership Tell Us About Galaxy Resources?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Galaxy Resources does have institutional investors; and they hold 33% of the stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Galaxy Resources, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Galaxy Resources. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Galaxy Resources
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that insiders own shares in Galaxy Resources Limited. In their own names, insiders own AU$13m worth of stock in the AU$385m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public -- mostly retail investors -- own 61% of Galaxy Resources. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.