Latest news with #WA1Resources
Yahoo
7 days ago
- Business
- Yahoo
Individual investors invested in WA1 Resources Ltd (ASX:WA1) up 7.8% last week, insiders too were rewarded
Key Insights The considerable ownership by individual investors in WA1 Resources indicates that they collectively have a greater say in management and business strategy 50% of the business is held by the top 8 shareholders Insider ownership in WA1 Resources is 22% Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A look at the shareholders of WA1 Resources Ltd (ASX:WA1) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Following a 7.8% increase in the stock price last week, individual investors profited the most, but insiders who own 22% 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 WA1 Resources. Check out our latest analysis for WA1 Resources What Does The Institutional Ownership Tell Us About WA1 Resources? 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 WA1 Resources. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at WA1 Resources' earnings history below. Of course, the future is what really matters. Our data indicates that hedge funds own 9.5% of WA1 Resources. 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 Tali Resources Ltd with 12% of shares outstanding. Regal Partners Limited is the second largest shareholder owning 9.5% of common stock, and Paul Savich holds about 7.3% of the company stock. Paul Savich, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time. Insider Ownership Of WA1 Resources The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. It seems insiders own a significant proportion of WA1 Resources Ltd. Insiders have a AU$269m stake in this AU$1.2b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. General Public Ownership The general public-- including retail investors -- own 37% 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. Private Company Ownership Our data indicates that Private Companies hold 3.0%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. Public Company Ownership We can see that public companies hold 12% of the WA1 Resources shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. 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. To that end, you should learn about the 2 warning signs we've spotted with WA1 Resources (including 1 which is a bit unpleasant) . If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
20-03-2025
- Business
- Yahoo
WA1 Resources (ASX:WA1) Is In A Good Position To Deliver On Growth Plans
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although software-as-a-service business lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. Given this risk, we thought we'd take a look at whether WA1 Resources (ASX:WA1) shareholders should be worried about its cash burn. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. Let's start with an examination of the business' cash, relative to its cash burn. View our latest analysis for WA1 Resources You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. When WA1 Resources last reported its December 2024 balance sheet in March 2025, it had zero debt and cash worth AU$87m. Importantly, its cash burn was AU$28m over the trailing twelve months. That means it had a cash runway of about 3.1 years as of December 2024. A runway of this length affords the company the time and space it needs to develop the business. Depicted below, you can see how its cash holdings have changed over time. Because WA1 Resources isn't currently generating revenue, we consider it an early-stage business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. Over the last year its cash burn actually increased by a very significant 64%. Oftentimes, increased cash burn simply means a company is accelerating its business development, but one should always be mindful that this causes the cash runway to shrink. Clearly, however, the crucial factor is whether the company will grow its business going forward. So you might want to take a peek at how much the company is expected to grow in the next few years. While WA1 Resources does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. WA1 Resources has a market capitalisation of AU$934m and burnt through AU$28m last year, which is 3.0% of the company's market value. That means it could easily issue a few shares to fund more growth, and might well be in a position to borrow cheaply. As you can probably tell by now, we're not too worried about WA1 Resources' cash burn. For example, we think its cash runway suggests that the company is on a good path. While its increasing cash burn wasn't great, the other factors mentioned in this article more than make up for weakness on that measure. After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash, as it seems on track to meet its needs over the medium term. Taking a deeper dive, we've spotted 2 warning signs for WA1 Resources you should be aware of, and 1 of them is significant. If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
08-02-2025
- Business
- Yahoo
WA1 Resources Ltd's (ASX:WA1) 20% gain last week benefited both retail investors who own 37% as well as insiders
The considerable ownership by retail investors in WA1 Resources indicates that they collectively have a greater say in management and business strategy A total of 8 investors have a majority stake in the company with 50% ownership Insiders own 22% of WA1 Resources Every investor in WA1 Resources Ltd (ASX:WA1) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 37% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). While retail investors were the group that benefitted the most from last week's AU$185m market cap gain, insiders too had a 22% share in those profits. Let's take a closer look to see what the different types of shareholders can tell us about WA1 Resources. See our latest analysis for WA1 Resources 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 WA1 Resources. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at WA1 Resources' earnings history below. Of course, the future is what really matters. It looks like hedge funds own 15% of WA1 Resources shares. 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. Agrimin Limited is currently the largest shareholder, with 13% of shares outstanding. Regal Partners Limited is the second largest shareholder owning 9.6% of common stock, and Paul Savich holds about 7.4% of the company stock. Paul Savich, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. 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. 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. 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. Our information suggests that insiders maintain a significant holding in WA1 Resources Ltd. It has a market capitalization of just AU$1.1b, and insiders have AU$240m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over WA1 Resources. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. We can see that Private Companies own 3.1%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It appears to us that public companies own 13% of WA1 Resources. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. It's always worth thinking about the different groups who own shares in a company. But to understand WA1 Resources better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for WA1 Resources 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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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