In This Article:
Key Insights
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Institutions' substantial holdings in Aura Energy implies that they have significant influence over the company's share price
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56% of the business is held by the top 5 shareholders
If you want to know who really controls Aura Energy Limited (ASX:AEE), 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 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Institutional investors would probably welcome last week's 18% increase in the share price after a year of 25% losses as a sign that returns may to begin trending higher.
In the chart below, we zoom in on the different ownership groups of Aura Energy.
View our latest analysis for Aura Energy
What Does The Institutional Ownership Tell Us About Aura Energy?
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.
As you can see, institutional investors have a fair amount of stake in Aura Energy. 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. 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 Aura Energy's historic earnings and revenue below, but keep in mind there's always more to the story.
It looks like hedge funds own 12% of Aura Energy 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. Macquarie Group, Ltd., Banking & Securities Investments is currently the company's largest shareholder with 13% of shares outstanding. With 12% and 12% of the shares outstanding respectively, MM Asset Management Inc and The Lind Partners, LLC are the second and third largest shareholders. Additionally, the company's CEO David Woodall directly holds 2.6% of the total shares outstanding.
On looking further, we found that 56% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.