Magna Mining Inc.'s (CVE:NICU) market cap touched CA$329m last week, benefiting both individual investors who own 52% as well as institutions

Key Insights

• The considerable ownership by individual investors in Magna Mining indicates that they collectively have a greater say in management and business strategy
• A total of 23 investors have a majority stake in the company with 48% ownership
• Recent purchases by insiders

A look at the shareholders of Magna Mining Inc. (CVE:NICU) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 10% increase in the stock price last week, individual investors profited the most, but institutions who own 31% stock also stood to gain from the increase.

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

See our latest analysis for Magna Mining

What Does The Institutional Ownership Tell Us About Magna Mining?

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.

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

It looks like hedge funds own 9.2% of Magna Mining shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Dundee Resources Limited is currently the largest shareholder, with 21% of shares outstanding. Polygon Global Partners LLP is the second largest shareholder owning 9.2% of common stock, and Jason Jessup holds about 5.2% of the company stock. Jason Jessup, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On studying our ownership data, we found that 23 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Magna Mining

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. 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.

Our most recent data indicates that insiders own some shares in Magna Mining Inc.. It has a market capitalization of just CA$329m, and insiders have CA$28m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 52% of Magna Mining. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Magna Mining has 2 warning signs (and 1 which is concerning) we think you should know about.

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.