Kelt Exploration Ltd.’s (TSE:KEL) largest shareholders are retail investors with 49% ownership, hedge funds own 24%
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The considerable ownership by retail investors in Kelt Exploration indicates that they collectively have a greater say in management and business strategy
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50% of the business is held by the top 24 shareholders
Every investor in Kelt Exploration Ltd. (TSE:KEL) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion’s share in the company with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Hedge funds, on the other hand, account for 24% of the company’s stockholders.
Let’s take a closer look to see what the different types of shareholders can tell us about Kelt Exploration.
See our latest analysis for Kelt Exploration
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 Kelt Exploration. 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. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Kelt Exploration’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Our data indicates that hedge funds own 24% of Kelt Exploration. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Looking at our data, we can see that the largest shareholder is GMT Capital Corp. with 24% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 13% and 3.0%, of the shares outstanding, respectively. David Wilson, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 24 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. There is some analyst coverage of the stock, but it could still become more well known, with time.
