64.06 F
July 24, 2024
PI Global Investments
Precious Metals

With 66% ownership of the shares, Triple Flag Precious Metals Corp. (TSE:TFPM) is heavily dominated by hedge funds owners

Key Insights

  • Institutions’ substantial holdings in Triple Flag Precious Metals implies that they have significant influence over the company’s share price
  • The largest shareholder of the company is Elliott Management Corporation with a 66% stake
  • Insiders have been selling lately

To get a sense of who is truly in control of Triple Flag Precious Metals Corp. (TSE:TFPM), it is important to understand the ownership structure of the business. We can see that hedge funds own the lion’s share in the company with 66% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, hedge funds ownership tends to carry a lot 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.

Let’s delve deeper into each type of owner of Triple Flag Precious Metals, beginning with the chart below.

View our latest analysis for Triple Flag Precious Metals

TSX:TFPM Ownership Breakdown January 16th 2024

What Does The Institutional Ownership Tell Us About 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.

Triple Flag Precious Metals already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 16th 2024

It would appear that 66% of Triple Flag Precious Metals shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company’s largest shareholder is Elliott Management Corporation, with ownership of 66%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Whitebox Advisors LLC is the second largest shareholder owning 1.8% of common stock, and Van Eck Associates Corporation holds about 1.7% of the company stock. Additionally, the company’s CEO Shaun Usmar directly holds 1.2% 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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Triple Flag Precious Metals

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can report that insiders do own shares in Triple Flag Precious Metals Corp.. The insiders have a meaningful stake worth CA$121m. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Triple Flag Precious Metals. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Triple Flag Precious Metals is showing 3 warning signs in our investment analysis , you should know about…

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Valuation is complex, but we’re helping make it simple.

Find out whether Triple Flag Precious Metals is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.

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