Given the large institutional holdings of the stock, Vault Minerals’ share price may be vulnerable to its trading decisions
Top 14 shareholders hold 51%
Use analyst forecast data and ownership research to better evaluate a company’s future performance
If you want to know who really controls Vault Minerals Limited (ASX:VAU), then you have to look at the makeup of its share registry. The group that holds the largest number of shares in the company is institutions, about 47% to be precise. That is, the group will benefit the most if the stock price rises (and lose the most if the stock price falls).
Because institutional owners have vast resources and liquidity, their investment decisions often have a lot of influence, especially on individual investors. Therefore, having a large amount of institutional money invested in a company is often considered a desirable trait.
In the image below, we zoom in on the different ownership groups of Vault Minerals.
See our latest analysis for Vault Minerals
ASX:VAU Ownership Details January 23, 2025
Many institutions measure their performance against an index that approximates the local market. So they usually focus more on companies included in major indexes.
As you can see, institutional investors own a fair amount of shares in Vault Minerals. This can show that the company has some credibility in the investment community. However, it’s best to be wary of relying on the so-called validation that comes with institutional investors. They make mistakes sometimes. When multiple institutions own a stock, there’s always a risk of a “crowded trade.” When something goes wrong with such a trade, multiple parties may compete to sell the stock quickly. This risk is higher for companies without a history of growth. You can see Vault Minerals’ historical earnings and revenue below, but keep in mind there’s always more to the story.
ASX:VAU Profit and Revenue Growth January 23, 2025
Our data shows that hedge funds hold 7.2% of Vault Minerals shares. It’s worth noting that because hedge funds are typically fairly active investors, they may try to influence management. Many hope to see value creation (and a higher stock price) in the short or medium term. Looking at our data, we can see that the largest shareholder is Van Eck Associates Corporation, with 9.1% of shares outstanding. For context, the second largest shareholder holds approximately 7.2% of shares outstanding, followed by the third largest shareholder with 6.5%.
Judging from the shareholder registration form, 51% of the shares are controlled by the top 14 shareholders, which means that no single shareholder has a majority interest in ownership.
Researching institutional ownership is a good way to gauge and screen for a stock’s expected performance. The same effect can be achieved by studying analysts’ emotions. There are a sizeable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, nearly everyone considers board members to be insiders. Company management is responsible for running the business, but the CEO will answer to the board of directors, even if he or she is a member of the board.
Insider ownership is positive when it shows leadership thinking like the true owners of the company. However, high insider ownership can also give significant power to a small group within the company. This can be a negative in some cases.
Our latest data suggests that insiders own some shares in Vault Minerals Limited. Insiders own meaningful shares worth AU$31m. Most people would consider this a real positive. It’s great to see this level of investment from insiders. You can see if these insiders have been buying lately here.
The public – including retail investors – own 43% of the company, so it can’t be ignored. While this size of ownership may not be enough to influence policy decisions in their favor, they can still have a collective impact on company policy.
I find it very interesting to know who actually owns a company. But to truly gain insight, we need to consider other information. Please note that Vault Minerals is showing 1 warning sign in our investment analysis you should know…
If you’re like me, you might want to consider whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Note: Figures for this article are calculated using data from the past 12 months, that is, the 12-month period ending on the last day of the month on which the financial statements are dated. This may not be consistent with the full year annual report data.
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This article from Simply Wall St is general in nature. We only use unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended to provide financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
