In This Article:
Key Insights
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The considerable ownership by retail investors in Theta Gold Mines indicates that they collectively have a greater say in management and business strategy
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50% of the business is held by the top 20 shareholders
To get a sense of who is truly in control of Theta Gold Mines Limited (ASX:TGM), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While retail investors were the group that benefitted the most from last week’s AU$31m market cap gain, institutions too had a 20% share in those profits.
Let's take a closer look to see what the different types of shareholders can tell us about Theta Gold Mines.
See our latest analysis for Theta Gold Mines
What Does The Institutional Ownership Tell Us About Theta Gold Mines?
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.
We can see that Theta Gold Mines does have institutional investors; and they hold a good portion of the company's 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. 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 Theta Gold Mines' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Theta Gold Mines. The company's largest shareholder is Zenith (Hk) Holding Limited, with ownership of 6.0%. For context, the second largest shareholder holds about 5.9% of the shares outstanding, followed by an ownership of 4.9% by the third-largest shareholder.
After doing some more digging, we found that the top 20 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Theta Gold Mines
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.