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20/20/12 on Nov 13, 2018 12:34am
FWTHFIW
https://finance.yahoo.com/news/kind-shareholder-appears-storm-resources-122415160.html
Every investor in Storm Resources Ltd (TSE:SRX) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.
Storm Resources is a smaller company with a market capitalization of CA$254m, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about SRX.
See our latest analysis for Storm Resources
TSX:SRX Ownership Summary November 12th 18
What Does The Institutional Ownership Tell Us About Storm Resources?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Storm Resources does have institutional investors; and they hold 54% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Storm Resources’s earnings history, below. Of course, the future is what really matters.
TSX:SRX Income Statement Export November 12th 18
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don’t have many shares in Storm Resources. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Storm Resources
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.