Explore the concept of deferred revenue in our comprehensive guide. Learn how it impacts financial statements, cash flow, and business strategy, ensuring effective financial management and planning.
Explore the concept of deferred revenue in our comprehensive guide. Learn how it impacts financial statements, cash flow, and business strategy, ensuring effective financial management and planning.
A look at the shareholders of Triple Flag Precious Metals Corp. (TSE:TFPM) can tell us which group is most powerful. The group holding the most number of shares in the company, around 66% to be precise, is hedge funds. Put another way, the group faces the maximum upside potential (or downside risk).
Because hedge funds owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of Triple Flag Precious Metals.
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Triple Flag Precious Metals. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Triple Flag Precious Metals, (below). Of course, keep in mind that there are other factors to consider, too.
TSX:TFPM Earnings and Revenue Growth January 4th 2025
Our data indicates that hedge funds own 66% of Triple Flag Precious Metals. That’s interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is Elliott Management Corporation with 66% of shares outstanding. This implies that they have majority interest control of the future of the company. With 2.0% and 1.8% of the shares outstanding respectively, FMR LLC and Mirae Asset Global Investments Co., Ltd. are the second and third largest shareholders. Additionally, the company’s CEO Sheldon Vanderkooy directly holds 0.7% of the total shares outstanding.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in Triple Flag Precious Metals Corp.. This is a big company, so it is good to see this level of alignment. Insiders own CA$96m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
The general public– including retail investors — own 14% stake in the company, and hence can’t easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we’ve identified 1 warning sign for Triple Flag Precious Metals that you should be aware of.
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.
