What Percentage Of Maverix Metals Inc. (TSE:MMX) Shares Do Insiders Own?

2022-09-03 02:42:50 By : Ms. Linda Wu

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If you want to know who really controls Maverix Metals Inc. (TSE:MMX), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of CA$806m, Maverix Metals is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Maverix Metals.

View our latest analysis for Maverix Metals

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.

As you can see, institutional investors have a fair amount of stake in Maverix Metals. 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 Maverix Metals' earnings history below. Of course, the future is what really matters.

Maverix Metals is not owned by hedge funds. Newmont Corporation is currently the company's largest shareholder with 29% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 8.9% by the third-largest shareholder. Furthermore, CEO Daniel O'Flaherty is the owner of 2.2% of the company's shares.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 55% stake.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

We can see that insiders own shares in Maverix Metals Inc.. It has a market capitalization of just CA$806m, and insiders have CA$68m 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.

The general public, who are usually individual investors, hold a 26% stake in Maverix Metals. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

We can see that public companies hold 46% of the Maverix Metals shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

It's always worth thinking about the different groups who own shares in a company. But to understand Maverix Metals better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Maverix Metals .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.

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