Native Mineral Resources Holdings Limited's (ASX:NMR) 10% gain last week benefited both individual investors who own 39% as well as insiders

Key Insights

• Native Mineral Resources Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 51% of the business is held by the top 6 shareholders
• Insider ownership in Native Mineral Resources Holdings is 36%

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To get a sense of who is truly in control of Native Mineral Resources Holdings Limited (ASX:NMR), 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 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 10% increase in the stock price last week, individual investors profited the most, but insiders who own 36% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Native Mineral Resources Holdings, beginning with the chart below.

See our latest analysis for Native Mineral Resources Holdings

What Does The Lack Of Institutional Ownership Tell Us About Native Mineral Resources Holdings?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Native Mineral Resources Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Native Mineral Resources Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Blake Cannavo with 21% of shares outstanding. With 21% and 3.0% of the shares outstanding respectively, W & E Maas Holdings Pty Limited and Dean Mellers are the second and third largest shareholders.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Native Mineral Resources Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Native Mineral Resources Holdings Limited. Insiders have a AU$64m stake in this AU$178m 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

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Native Mineral Resources Holdings. 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

We can see that Private Companies own 25%, of the shares on issue. 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 Native Mineral Resources Holdings better, we need to consider many other factors. For example, we've discovered 4 warning signs for Native Mineral Resources Holdings (3 can't be ignored!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free 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.