Silvercorp Metals Inc.'s (TSE:SVM) 6.3% loss last week hit both individual investors who own 60% as well as institutions

Key Insights

• The considerable ownership by individual investors in Silvercorp Metals indicates that they collectively have a greater say in management and business strategy
• The top 25 shareholders own 34% of the company
• Insiders have been selling lately

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A look at the shareholders of Silvercorp Metals Inc. (TSE:SVM) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 6.3% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 36% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Silvercorp Metals.

See our latest analysis for Silvercorp Metals

What Does The Institutional Ownership Tell Us About Silvercorp Metals?

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.

As you can see, institutional investors have a fair amount of stake in Silvercorp Metals. 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. 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 Silvercorp Metals, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Silvercorp Metals. Our data shows that Van Eck Associates Corporation is the largest shareholder with 9.0% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.5% and 2.9% of the stock. Rui Feng, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Silvercorp Metals

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Silvercorp Metals Inc.. In their own names, insiders own CA$42m worth of stock in the CA$1.1b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 60% of Silvercorp Metals shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Silvercorp Metals better, we need to consider many other factors. Take risks for example - Silvercorp Metals has 2 warning signs we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.