What type of shareholders make up the share register of Silver Lake Resources Limited (ASX:SLR)?


The large groups of shareholders of Silver Lake Resources Limited (ASX:SLR) have power over the company. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. We also tend to see a decline in insider participation in companies that were previously public.

Silver Lake Resources has a market capitalization of A$1.4 billion, so we expect some institutional investors to have taken notice of the stock. Looking at our ownership group data (below), it appears that institutional investors have bought the company. Let’s dig deeper into each type of owner to learn more about Silver Lake Resources.

Check out our latest analysis for Silver Lake Resources

ASX: SLR Ownership Breakdown June 15, 2022

What does institutional ownership tell us about Silver Lake’s resources?

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.

As you can see, institutional investors own a sizeable portion of Silver Lake Resources. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the past earnings trajectory of Silver Lake Resources (below). Of course, keep in mind that there are other factors to consider as well.

ASX: SLR earnings and revenue growth June 15, 2022

Hedge funds don’t have a lot of shares in Silver Lake Resources. Our data shows that Van Eck Associates Corporation is the largest shareholder with 9.1% of shares outstanding. For context, the second shareholder owns approximately 5.6% of the outstanding shares, followed by a 4.8% ownership by the third shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely distributed and there is no dominant shareholder.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.

Silver Lake Resource Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders of Silver Lake Resources Limited own less than 1% of the company. However, insiders may have an indirect interest through a more complex structure. It appears that the board owns approximately A$4.3 million worth of shares. This compares to a market capitalization of A$1.4 billion. Many investors in small companies prefer to see the board more heavily invested. You can click here to see if these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 50% of Silver Lake Resources. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Example: we have identified 3 warning signs for Silver Lake Resources you should be aware.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.


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