Every investor in Chaarat Gold Holdings Limited (LON:CGH) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of UK£176m, Chaarat Gold Holdings is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Chaarat Gold Holdings.
View our latest analysis for Chaarat Gold Holdings
What Does The Institutional Ownership Tell Us About Chaarat Gold Holdings?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Chaarat Gold Holdings does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Chaarat Gold Holdings' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Chaarat Gold Holdings. Looking at our data, we can see that the largest shareholder is Labro Investments Limited with 40% of shares outstanding. With 4.5% and 4.3% of the shares outstanding respectively, China Nonferrous Metal Mining (Group) Co.,Ltd. and Numis Asset Management Limited are the second and third largest shareholders. Additionally, the company's CEO Artem Volynets directly holds 1.1% of the total shares outstanding.
On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.