Triple Flag Precious Metals Corp.'s (TSE:TFPM) large hedge funds owners must be happy as stock continues to impress, up 3.3% over the past week

Key Insights

• Institutions' substantial holdings in Triple Flag Precious Metals implies that they have significant influence over the company's share price
• Elliott Management Corporation owns 67% of the company
• Insiders have been selling lately

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Every investor in Triple Flag Precious Metals Corp. (TSE:TFPM) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are hedge funds with 67% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for hedge funds investors after the company gained CA$183m in market cap last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 33%.

Let's delve deeper into each type of owner of Triple Flag Precious Metals, beginning with the chart below.

See our latest analysis for Triple Flag Precious Metals

What Does The Institutional Ownership Tell Us About Triple Flag Precious Metals?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Triple Flag Precious Metals already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Triple Flag Precious Metals' earnings history below. Of course, the future is what really matters.

Our data indicates that hedge funds own 67% of Triple Flag Precious Metals. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. The company's largest shareholder is Elliott Management Corporation, with ownership of 67%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 2.1% and 1.5% of the shares outstanding respectively, FMR LLC and Van Eck Associates Corporation are the second and third largest shareholders. Additionally, the company's CEO Sheldon Vanderkooy directly holds 0.6% of the total shares outstanding.

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 Triple Flag Precious Metals

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.

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.

We can see that insiders own shares in Triple Flag Precious Metals Corp.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CA$119m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Triple Flag Precious Metals. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Triple Flag Precious Metals better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Triple Flag Precious Metals .

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.