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OKYO Pharma Limited's (NASDAQ:OKYO) market cap up US$38m last week, benefiting both individual investors who own 58% as well as insiders
OKYO Pharma's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
42% of the business is held by the top 12 shareholders
Insider ownership in OKYO Pharma is 36%
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A look at the shareholders of OKYO Pharma Limited (NASDAQ:OKYO) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 58% increase in the stock price last week, individual investors profited the most, but insiders who own 36% stock also stood to gain from the increase.
Let's take a closer look to see what the different types of shareholders can tell us about OKYO Pharma.
View our latest analysis for OKYO Pharma
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 OKYO Pharma. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 OKYO Pharma, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in OKYO Pharma. Gabriele Marco Cerrone is currently the largest shareholder, with 29% of shares outstanding. For context, the second largest shareholder holds about 6.8% of the shares outstanding, followed by an ownership of 5.9% by the third-largest shareholder.
Our studies suggest that the top 12 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Our information suggests that insiders maintain a significant holding in OKYO Pharma Limited. Insiders have a US$37m stake in this US$102m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
The general public, who are usually individual investors, hold a substantial 58% stake in OKYO Pharma, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
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. To that end, you should learn about the 4 warning signs we've spotted with OKYO Pharma (including 2 which make us uncomfortable) .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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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