How much GoviEx Uranium Inc. (CVE:GXU) do insiders own?

Every investor in GoviEx Uranium Inc. (CVE:GXU) should know the most powerful shareholder groups. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.

GoviEx Uranium is a small company with a market capitalization of C$281 million, so it may still fly under the radar of many institutional investors. In the table below, we can see that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about GoviEx Uranium.

See our latest analysis for GoviEx Uranium

TSXV: GXU Ownership Breakdown April 9, 2022

What does institutional ownership tell us about GoviEx Uranium?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that GoviEx Uranium has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So, it is worth checking out the earnings history of GoviEx Uranium below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSXV: GXU Earnings and Revenue Growth April 9, 2022

It appears that hedge funds own 10% of GoviEx Uranium shares. This is worth noting, as hedge funds are often quite active investors, who may try to influence management. Many want value creation (and a rise in share price) in the short to medium term. Our data shows that Denison Mines Corp. is the main shareholder with 11% of the outstanding shares. Meanwhile, the second and third largest shareholders hold 10% and 6.2% of the outstanding shares respectively. Eric Krafft, who is the third shareholder, also holds the title of member of the board of directors.

Our studies suggest that the top 20 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. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Insider Ownership of GoviEx Uranium

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

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.

It appears that insiders own a significant share of GoviEx Uranium Inc.. It has a market capitalization of just C$281 million, and insiders hold C$33 million of shares in their own name. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 57% of GoviEx Uranium. 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.

Ownership of a public company

It appears to us that public companies hold 11% of GoviEx Uranium. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Be aware that GoviEx Uranium displays 6 warning signs in our investment analysis and 3 of them cannot be ignored…

Sure this may not be the best stock to buy. So take a look at this free free list of interesting companies.

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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