Institutional investors may overlook Osisko Mining Inc.’s (TSE:OSK) $69 million market value decline after the company posted a 7.5% return in one year

Key findings

• Significantly high institutional ownership implies that Osisko Mining’s share price is sensitive to their trading activities
• A total of 20 investors own the majority of the company with 50% each
• Using data on past company performance and owner research, you can better estimate a company’s future performance

To get a feel for who really controls Osisko Mining Inc. (TSE:OSK), it is important to understand the ownership structure of the company. The group that holds the most shares in the company, around 53%, are institutions. In other words, this group stands to gain the most (or lose the most) from their investment in the company.

Institutional investors were the group most affected after the company’s market capitalization fell to C$1.2 billion last week. The 7.5 percent gains in a year may have helped mitigate their overall losses. But they are likely cautious about future losses.

Let’s take a closer look at what the different types of shareholders can tell us about Osisko Mining.

Check out our latest analysis for Osisko Mining

What does institutional ownership tell us about Osisko Mining?

Institutional investors often compare their own returns to those of a commonly followed index, so they typically consider buying larger companies included in the relevant benchmark index.

Osisko Mining already has institutions on its share registry. In fact, they own a sizeable stake in the company. This may indicate that the company enjoys a certain level of trust in the investment community. However, one should be wary of relying on the supposed validation that institutional investors bring. They too are sometimes wrong. It is not uncommon to see a large share price drop when two large institutional investors try to sell a stock at the same time, so it is worth checking out Osisko Mining’s past earnings history (see below). Of course, remember that there are other factors to consider as well.

Institutional investors own over 50% of the company, so together they are likely to have a strong influence on the board’s decisions. Osisko Mining is not owned by hedge funds. Our data shows that BlackRock, Inc. is the largest shareholder with 17% of outstanding shares. For comparison, the second largest shareholder holds about 10% of outstanding shares, followed by the third largest shareholder with 5.1%.

A closer look at our ownership numbers suggests that the top 20 shareholders together own 50%, meaning no single shareholder has a majority.

While studying institutional ownership of a company can enrich your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. There are some analyst coverage of the stock, but it could become even more popular with time.

Insider ownership of Osisko Mining

The definition of an insider may vary slightly from country to country, but it always includes members of the board of directors. Company management runs the business, but the CEO is responsible to the board, even if he or she is a member of the board.

I think insider ownership is generally a good thing. However, in some cases it makes it harder for other shareholders to hold the board accountable for decisions.

Shareholders would probably be interested to know that insiders own shares in Osisko Mining Inc. In their own names, insiders own C$20 million worth of shares in the C$1.2 billion company. Some would say this shows an alignment of interests between shareholders and the board, but it might be worth checking to see if these insiders have been selling.

Public property

The general public, usually retail investors, owns a 45% stake in Osisko Mining. While this size of ownership is not enough to sway a political decision in their favor, they can still collectively influence company policy.

Next Steps:

I find it very interesting to investigate who exactly owns a company. But to gain real insight, we need to consider other information as well. To do this, you should be aware of the following things: 3 warning signs we discovered it at Osisko Mining.

If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the future.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

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