In This Article:
Key Insights
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Insiders appear to have a vested interest in Petrus Resources' growth, as seen by their sizeable ownership
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50% of the business is held by the top 2 shareholders
Every investor in Petrus Resources Ltd. (TSE:PRQ) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 74% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Even though insiders have sold shares recently, the group owns the most numbers of shares in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Petrus Resources.
See our latest analysis for Petrus Resources
What Does The Lack Of Institutional Ownership Tell Us About Petrus Resources?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Petrus Resources' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Hedge funds don't have many shares in Petrus Resources. The company's largest shareholder is Donald Gray, with ownership of 27%. For context, the second largest shareholder holds about 23% of the shares outstanding, followed by an ownership of 21% by the third-largest shareholder. Furthermore, CEO Ken Gray is the owner of 2.0% of the company's shares.
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.
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. 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 Petrus Resources
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.