Significant control over Newcore Gold by retail investors implies that the general public has more power to influence management and governance-related decisions
44% of the business is held by the top 21 shareholders
To get a sense of who is truly in control of Newcore Gold Ltd. (CVE:NCAU), it is important to understand the ownership structure of the business. With 56% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
While retail investors were the group that reaped the most benefits after last week’s 14% price gain, institutions also received a 31% cut.
In the chart below, we zoom in on the different ownership groups of Newcore Gold.
What Does The Institutional Ownership Tell Us About Newcore Gold?
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 Newcore Gold. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Newcore Gold, (below). Of course, keep in mind that there are other factors to consider, too.
TSXV:NCAU Earnings and Revenue Growth March 20th 2025
We note that hedge funds don't have a meaningful investment in Newcore Gold. Franklin Resources, Inc. is currently the company's largest shareholder with 7.1% of shares outstanding. With 6.4% and 4.6% of the shares outstanding respectively, Aegis Financial Corporation and Blayne Johnson are the second and third largest shareholders. Blayne Johnson, who is the third-largest shareholder, also happens to hold the title of Lead Director. Furthermore, CEO Luke Alexander is the owner of 1.5% of the company's shares.
On studying our ownership data, we found that 21 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Newcore Gold
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Newcore Gold Ltd.. It has a market capitalization of just CA$145m, and insiders have CA$19m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public -- including retail investors -- own 56% of Newcore Gold. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
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.
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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.
