Institutions profited after Aya Gold & Silver Inc.'s (TSE:AYA) market cap rose CA$187m last week but retail investors profited the most

Key Insights

• Significant control over Aya Gold & Silver by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 37% of the company
• Institutions own 33% of Aya Gold & Silver

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A look at the shareholders of Aya Gold & Silver Inc. (TSE:AYA) can tell us which group is most powerful. With 59% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that reaped the most benefits after last week’s 15% price gain, institutions also received a 33% cut.

In the chart below, we zoom in on the different ownership groups of Aya Gold & Silver.

View our latest analysis for Aya Gold & Silver

What Does The Institutional Ownership Tell Us About Aya Gold & Silver?

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 Aya Gold & Silver. 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. 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 Aya Gold & Silver's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Aya Gold & Silver. Van Eck Associates Corporation is currently the largest shareholder, with 9.9% of shares outstanding. With 7.5% and 3.1% of the shares outstanding respectively, Robert Taub and Tidal Investments LLC are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Aya Gold & Silver

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.

Shareholders would probably be interested to learn that insiders own shares in Aya Gold & Silver Inc.. It has a market capitalization of just CA$1.3b, and insiders have CA$112m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 59% of Aya Gold & Silver. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.