Imperial Metals Corporation (TSE:III) insiders have significant skin in the game with 49% ownership
Key Insights
Imperial Metals' significant insider ownership suggests inherent interests in company's expansion
The top 2 shareholders own 61% of the company
Every investor in Imperial Metals Corporation (TSE:III) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 49% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So, insiders of Imperial Metals have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.
In the chart below, we zoom in on the different ownership groups of Imperial Metals.
See our latest analysis for Imperial Metals
What Does The Institutional Ownership Tell Us About Imperial Metals?
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 Imperial Metals. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Imperial Metals, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Imperial Metals. Norman Edwards is currently the company's largest shareholder with 45% of shares outstanding. Fairholme Capital Management, L.L.C. is the second largest shareholder owning 16% of common stock, and Larry G. Moeller holds about 3.0% of the company stock. Larry G. Moeller, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. In addition, we found that J. Kynoch, the CEO has 1.0% of the shares allocated to their name.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Imperial Metals
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in Imperial Metals Corporation. It has a market capitalization of just CA$429m, and insiders have CA$212m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 31% stake in Imperial Metals. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Imperial Metals better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Imperial Metals you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
