Advertisement
U.S. Markets closed
  • S&P 500

    5,160.64
    -49.27 (-0.95%)
     
  • Dow 30

    38,461.51
    -422.16 (-1.09%)
     
  • Nasdaq

    16,170.36
    -136.28 (-0.84%)
     
  • Russell 2000

    2,028.39
    -52.41 (-2.52%)
     
  • Crude Oil

    86.25
    +1.02 (+1.20%)
     
  • Gold

    2,352.40
    -10.00 (-0.42%)
     
  • Silver

    28.06
    +0.07 (+0.25%)
     
  • EUR/USD

    1.0748
    -0.0111 (-1.0210%)
     
  • 10-Yr Bond

    4.5600
    +0.1940 (+4.44%)
     
  • Vix

    15.80
    +0.82 (+5.47%)
     
  • GBP/USD

    1.2539
    -0.0138 (-1.0908%)
     
  • USD/JPY

    152.9790
    +1.2240 (+0.8065%)
     
  • BTC-USD

    69,825.59
    +869.62 (+1.26%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,961.21
    +26.42 (+0.33%)
     
  • Nikkei 225

    39,581.81
    -191.32 (-0.48%)
     

Who Are The Top Investors In Parkway Minerals NL (ASX:PWN)?

In this analysis, my focus will be on developing a perspective on Parkway Minerals NL’s (ASX:PWN) latest ownership structure, a less discussed, but important factor. The impact of a company’s ownership structure affects both its short- and long-term performance. Since the same amount of capital coming from an activist institution and a passive mutual fund has different implications on corporate governance, it is a useful exercise to deconstruct XYZ’s shareholder registry. All data provided is as of the most recent financial year end.

View our latest analysis for Parkway Minerals NL

ASX:PWN Ownership Summary Nov 9th 17
ASX:PWN Ownership Summary Nov 9th 17

Institutional Ownership

Institutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. PWN hardly has any institutional ownership, leaving investors little to think about sharp price volatility in the stock that could take place due to institutional trading.

Insider Ownership

I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. In essence, insider ownership is more about the alignment of shareholders’ interests with the management. PWN insiders hold a significant stake of 18.00% in the company. This level of insider ownership has been found to have a negative impact on companies with consistently low PE ratios (underperformers), while it has been positive in the case of high PE ratio firms (outperformers). Another aspect of insider ownership is to learn about their recent transactions. Insiders buying company shares can be a positive indicator of future performance, but a selling decision can simply be driven by personal financial needs.

General Public Ownership

A substantial ownership of 64.12% in PWN is held by the general public. This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. This is a positive sign for an investor who wants to be involved in key decision-making of the company.

Private Company Ownership

Another important group of owners for potential investors in PWN are private companies that hold a stake of 17.19% in PWN. These are companies that are mainly invested due to their strategic interests or are incentivized by reaping capital gains on investments their shareholdings. An ownership of this size indicates a strong financial backing and has the potential to influence PWN’s business strategy. Thus, investors should dig deeper into PWN’s business relations with these companies and how it can affect shareholder returns in the long-term.

What this means for you:

Are you a shareholder? Institutional ownership level and composition in PWN is not high nor active enough to significantly impact its investment thesis. If you’re interested in bolstering your portfolio with new stocks and are looking for ideas, take a look at our free app to see my list of stocks with a strong growth potential.

Are you a potential investor? If you are building an investment case for PWN, ownership structure alone should not dictate your decision to buy or sell the stock. Instead, you should be evaluating fundamental factors like the relative valuation of PWN, which is an important driver that determines PWN’s share price. Take a look at our most recent infographic report on PWN for a more in-depth analysis of these factors to help you make a more well-informed investment decision.

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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Advertisement