What does the ownership structure of Gabriel Resources Ltd. look like? (CVE: GBU)?
Each investor in Gabriel Resources Ltd. (CVE: GBU) must know the most powerful groups of shareholders. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of C $ 213 million, Gabriel Resources is a small cap stock, so it might be overlooked by many institutional investors. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. Let’s dig deeper into each type of owner, to find out more about Gabriel Resources.
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What does institutional ownership tell us about Gabriel resources?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Gabriel Resources has institutional investors; and they own a good portion of the company’s shares. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out the earnings history of Gabriel Resources below. Of course, the future is what really matters.
It appears that hedge funds hold 55% of the shares of Gabriel Resources. This is interesting, because hedge funds can be quite active and activist. Many are looking for medium-term catalysts that will drive up the share price. Looking at our data, we can see that the largest shareholder is Kopernik Global Investors, LLC with 17% of the shares outstanding. For context, the second largest shareholder owns around 17% of the outstanding shares, followed by 13% ownership by the third largest shareholder.
Looking further, we found that 58% of the shares are owned by the 4 largest shareholders. In other words, these shareholders have a say in the decisions of the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. As far as we can tell, the company is not covered by analysts, so it probably goes unnoticed.
Insider property of Gabriel Resources
The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that 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 of Gabriel Resources Ltd. own less than 1% of the company. It appears that the board of directors owns shares valued at approximately C $ 35,000. This compares to a market cap of C $ 213 million. Many tend to prefer to see a board with larger holdings. A good next step might be to take a look at this free insider buying and selling summary.
General public property
The general public, including retail investors, own a 24% stake in the company and therefore cannot be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
With a 13% stake, private equity firms could influence the board of directors of Gabriel Resources. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After some time, they may look to sell and redeploy their capital elsewhere.
It’s always worth thinking about the different groups that own shares in a company. But to understand Gabriel Resources better, there are many other factors to consider. Note that Gabriel Resources displays 4 warning signs in our investment analysis , and 3 of them are a bit rude …
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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