Bravo Mining Corp. (CVE:BRVO) insiders have recently purchased stock and their bets paid off last week as company hit CA$194m market cap

Key Insights

• Insiders appear to have a vested interest in Bravo Mining's growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 58% ownership
• Insiders have been buying lately

To get a sense of who is truly in control of Bravo Mining Corp. (CVE:BRVO), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 53% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Having purchased shares recently, insiders must be glad after market cap hit CA$194m last week.

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

See our latest analysis for Bravo Mining

What Does The Institutional Ownership Tell Us About Bravo Mining?

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.

Bravo Mining 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Bravo Mining's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Bravo Mining. With a 48% stake, CEO Luis de Azevedo is the largest shareholder. BlackRock, Inc. is the second largest shareholder owning 9.5% of common stock, and Franklin Resources, Inc. holds about 4.2% of the company stock.

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 58% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Bravo Mining

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.

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.

It seems that insiders own more than half the Bravo Mining Corp. stock. This gives them a lot of power. Given it has a market cap of CA$194m, that means they have CA$104m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bravo Mining. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

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

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.