retail investors who own 59% along with institutions invested in Amaroq Minerals Ltd. (CVE:AMRQ) saw increase in their holdings value last week

Key Insights

• Amaroq Minerals' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 41% of the business is held by the top 16 shareholders
• Insiders have been buying lately

To get a sense of who is truly in control of Amaroq Minerals Ltd. (CVE:AMRQ), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While retail investors were the group that reaped the most benefits after last week’s 14% price gain, institutions also received a 20% cut.

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

Check out our latest analysis for Amaroq Minerals

What Does The Institutional Ownership Tell Us About Amaroq Minerals?

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.

Amaroq Minerals already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Amaroq Minerals' earnings history below. Of course, the future is what really matters.

Amaroq Minerals is not owned by hedge funds. J L E Properties Limited is currently the largest shareholder, with 6.0% of shares outstanding. The second and third largest shareholders are David Neuhauser and Livermore Partners LLC, with an equal amount of shares to their name at 4.5%. In addition, we found that Eldur Olafsson, the CEO has 0.9% of the shares allocated to their name.

A deeper look at our ownership data shows that the top 16 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Amaroq Minerals

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

Shareholders would probably be interested to learn that insiders own shares in Amaroq Minerals Ltd.. As individuals, the insiders collectively own CA$29m worth of the CA$344m 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 59% of Amaroq Minerals shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 12%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Amaroq Minerals better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Amaroq Minerals you should be aware of, and 1 of them makes us a bit uncomfortable.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.