Endeavor Mining plc (TSE:EDV) is favored by institutional owners who own 54% of the company.

Key insights

• Institutions’ large holdings in Endeavor Mining mean they have a significant influence on the company’s share price
• 6 investors own a majority stake in the company with 52% ownership
• Insiders have been selling off recently

A look at the shareholders of Endeavor Mining plc (Tokyo Stock Exchange: EDV) can tell us which group is stronger. The group that owns the largest share of the pie are institutions, which own 54% of its shares. This means that the group stands to gain more if the stock rises (or lose more if there is a decline).

Given the vast amount of money and research capabilities at its disposal, institutional ownership tends to carry a great deal of weight, especially among individual investors. As a result, the large amount of institutional money invested in the company is generally viewed as a positive attribute.

Let’s dive deeper into each type of Endeavor Mining owner, starting with the chart below.

View our latest analysis for Endeavor Mining

What does institutional ownership tell us about Endeavor Mining?

Institutions typically measure themselves against a benchmark when reporting to their investors, so they often become more enthusiastic about a stock once it’s included in a major index. We expect most companies to have some institutions on the register, especially if they are growing.

We can see that Endeavor Mining has institutional investors; They own a large portion of the company’s shares. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a large share price drop if two large institutional investors try to sell out of a stock at the same time. So it’s worth checking Endeavor Mining’s past earnings trajectory (below). Of course, keep in mind that there are other factors to take into consideration as well.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don’t own many shares in Endeavor Mining. Looking at our data, we can see that the largest shareholder is La Mancha Holding S.à RL with 18% of shares outstanding. For context, the second largest shareholder owns approximately 12% of shares outstanding, followed by an ownership of 8.0% by the third largest shareholder.

Upon further examination, we found that more than half of the company’s shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are somewhat balanced by the smaller shareholders.

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 worth knowing their overall view on the future.

Inside ownership of Endeavor Mining

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

Most consider insider ownership a positive because it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in Endeavor Mining plc. Insiders own a significant stake worth CA$417m. Most would see this as a real positive. Most would say that this shows alignment of interests between shareholders and the board. However, it may be worth checking If these insiders are sold.

Public ownership

The general public, usually individual investors, own a 21% stake in Endeavor Mining. This size of ownership, although significant, may not be enough to change company policy if the decision is not in sync with other major shareholders.

Private equity ownership

With an 18% stake, private equity firms can influence Endeavor Mining’s board of directors. Some may like this, because private equity firms are sometimes activists who hold management accountable. But other times, private equity is sold, turning the company public.

Next steps:

It’s always useful to think about the different groups that own shares in a company. But to understand Endeavor Mining better, we need to consider many other factors. Take risk for example – Endeavor Mining has done just that 2 warning signs (and 1 which is a bit unpleasant) We think you should know about it.

If you’re like me, you may want to consider whether this company will grow or shrink. Fortunately, you can check This free report shows analysts’ forecasts for its future.

Note: The figures in this article are calculated using trailing-twelve-month data, which refers to the 12-month period ending on the last date of the month in which the financial statement is dated. This may not be consistent with the full year annual report figures.

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