Catalyst Metals Limited's (ASX:CYL) largest shareholders are retail investors who were rewarded as market cap surged AU$28m last week

Simply Wall St

Published November 03, 2023

Key Insights

• Catalyst Metals' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 44% of the business is held by the top 24 shareholders
• Insiders have been buying lately

Every investor in Catalyst Metals Limited (ASX:CYL) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by AU$28m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Catalyst Metals.

Check out our latest analysis for Catalyst Metals

ASX:CYL Ownership Breakdown November 3rd 2023

What Does The Institutional Ownership Tell Us About Catalyst 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.

As you can see, institutional investors have a fair amount of stake in Catalyst Metals. 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 Catalyst Metals' earnings history below. Of course, the future is what really matters.

ASX:CYL Earnings and Revenue Growth November 3rd 2023

Catalyst Metals is not owned by hedge funds. Hancock Prospecting Pty Ltd is currently the company's largest shareholder with 6.3% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.8% and 4.2%, of the shares outstanding, respectively. Additionally, the company's CEO James de Crespigny directly holds 0.7% of the total shares outstanding.

On studying our ownership data, we found that 24 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Catalyst Metals

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Our information suggests that insiders maintain a significant holding in Catalyst Metals Limited. Insiders own AU$24m worth of shares in the AU$160m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Catalyst Metals shares. 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.

Private Company Ownership

We can see that Private Companies own 16%, of the shares on issue. 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

It appears to us that public companies own 7.1% of Catalyst Metals. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.