What type of shareholders does Bluestone Resources Inc. (CVE: BSR) have?


The large shareholder groups of Bluestone Resources Inc. (CVE: BSR) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares of small companies. Companies that were once in the public sector tend to have less insider ownership.

Bluestone Resources is not a large company by global standards. It has a market cap of C $ 251 million, which means it wouldn’t get the attention of many institutional investors. In the graphic below, we can see that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Bluestone Resources.

See our latest analysis of Bluestone resources

TSXV: Distribution of BSR ownership May 21, 2021

What does institutional ownership tell us about Bluestone resources?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. You would expect most businesses to have institutions listed, especially if they are growing.

We can see that Bluestone Resources has institutional investors; and they own a good portion of the shares of the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone since institutions sometimes make bad investments, as everyone else does. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking out Bluestone Resources’ past earnings trajectory, (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
TSXV: BSR Profits and Revenue Growth May 21, 2021

Hedge funds don’t have a lot of shares in Bluestone Resources. Our data shows that Lorito Holdings S.à.rl is the largest shareholder with 14% of the shares outstanding. In comparison, the second and third largest shareholders own around 13% and 11% of the shares. In addition, CEO Jack O. Lundin owns 0.6% of the shares of the company.

We dug a little deeper and found that 8 of the major shareholders make up about 51% of the register, implying that with the larger shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which direction the wind is blowing. While there is some analyst coverage, the company is probably not widely covered. So that might get more attention, on the track.

Insider Ownership of Bluestone Resources

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company’s management runs the business, but the CEO will report to the board, even if he or she is a member of the board.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Bluestone Resources Inc. On their own behalf, insiders hold C $ 11 million worth of shares in the C $ 251 million company. It’s good to see some investment from insiders, but it might be worth checking to see if those insiders have bought.

General public property

The general public, with a 47% stake in the company, will not be easily ignored. While this group may not necessarily be able to do things, they can certainly have a real influence on the management of the business.

Private Equity Ownership

With a 25% stake, private equity firms could influence the board of directors of Bluestone Resources. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could exit the investment after making it public.

Private company ownership

Our data indicates that private companies own 13% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth asking who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. To this end, you must be aware of the 2 warning signs we spotted with Bluestone Resources.

If you’re like me, you might want to think about how to grow or shrink this business. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month in which the balance sheet is dated. This may not be consistent with figures in annual reports.

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