While private companies own 36% of WIA Gold Limited (ASX:WIA), individual investors are its largest shareholders with 45% ownership

editorial-team@simplywallst.com (Simply Wall St)

Sun, Sep 29, 2024, 11:22 PM 4 min read

To get a sense of who is truly in control of WIA Gold Limited (ASX:WIA), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, private companies make up 36% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of WIA Gold.

Check out our latest analysis for WIA Gold

ownership-breakdown — ASX:WIA Ownership Breakdown September 30th 2024

What Does The Institutional Ownership Tell Us About WIA Gold?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

WIA Gold already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 WIA Gold, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — ASX:WIA Earnings and Revenue Growth September 30th 2024

Hedge funds don't have many shares in WIA Gold. Our data shows that Capital DI Limited is the largest shareholder with 16% of shares outstanding. With 9.2% and 5.2% of the shares outstanding respectively, Bpm Investments Limited and El Raghy Kriewaldt Pty. Ltd. are the second and third largest shareholders.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of WIA Gold

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in WIA Gold Limited. Insiders have a AU$19m stake in this AU$165m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 45% stake in WIA Gold. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 36%, of the WIA Gold stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand WIA Gold better, we need to consider many other factors. For example, we've discovered 2 warning signs for WIA Gold (1 can't be ignored!) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.