In This Article:
Key Insights
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Significantly high institutional ownership implies Northern Star Resources' stock price is sensitive to their trading actions
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49% of the business is held by the top 25 shareholders
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Northern Star Resources Limited (ASX:NST) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, institutional investors ended up benefitting the most after the company hit AU$20b in market cap. One-year return to shareholders is currently 47% and last week’s gain was the icing on the cake.
In the chart below, we zoom in on the different ownership groups of Northern Star Resources.
View our latest analysis for Northern Star Resources
What Does The Institutional Ownership Tell Us About Northern Star 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.
As you can see, institutional investors have a fair amount of stake in Northern Star Resources. 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. 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 Northern Star Resources' earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Northern Star Resources is not owned by hedge funds. The company's largest shareholder is BlackRock, Inc., with ownership of 11%. In comparison, the second and third largest shareholders hold about 7.8% and 5.7% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.