Aldebaran Resources Inc.'s (CVE:ALDE) hedge funds investors lost 13% over the past week but have profited from longer-term gains

Key Insights

• Institutions' substantial holdings in Aldebaran Resources implies that they have significant influence over the company's share price
• A total of 2 investors have a majority stake in the company with 59% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Aldebaran Resources Inc. (CVE:ALDE) should be aware of the most powerful shareholder groups. We can see that hedge funds own the lion's share in the company with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Hedge funds investors endured the highest losses after the company's market cap fell by CA$22m last week. However, the 21% one-year return to shareholders may have helped lessen their pain. But they would probably be wary of future losses.

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

Check out our latest analysis for Aldebaran Resources

What Does The Lack Of Institutional Ownership Tell Us About Aldebaran Resources?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. 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. Aldebaran Resources might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Our data indicates that hedge funds own 44% of Aldebaran Resources. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Route One Investment Company, L.P. is currently the largest shareholder, with 44% of shares outstanding. South32 Limited is the second largest shareholder owning 15% of common stock, and Sibanye Stillwater Limited holds about 14% of the company stock. Additionally, the company's CEO John Black directly holds 1.3% of the total shares outstanding.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 59% stake.

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 Aldebaran Resources

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Aldebaran Resources Inc.. It has a market capitalization of just CA$155m, and insiders have CA$8.1m worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Aldebaran Resources. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 29% of Aldebaran Resources. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Aldebaran Resources better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Aldebaran Resources you should be aware of, and 2 of them are concerning.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.