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Tudor Gold Corp.'s (CVE:TUD) largest shareholders are individual investors with 49% ownership, private companies own 27%


Tudor Gold Corp.'s (CVE:TUD) largest shareholders are individual investors with 49% ownership, private companies own 27%

The considerable ownership by individual investors in Tudor Gold indicates that they collectively have a greater say in management and business strategy

To get a sense of who is truly in control of Tudor Gold Corp. (CVE:TUD), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 49% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And private companies on the other hand have a 27% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Tudor Gold.

View our latest analysis for Tudor Gold

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.

Tudor Gold already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Tudor Gold's historic earnings and revenue below, but keep in mind there's always more to the story.

Tudor Gold is not owned by hedge funds. The company's largest shareholder is Tudor Holdings Ltd, with ownership of 24%. With 17% and 3.5% of the shares outstanding respectively, Eric Sprott and Plutos Vermoegensverwaltung AG are the second and third largest shareholders.

We did some more digging and found that 9 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.

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 some analyst coverage of the stock, but it could still become more well known, with time.

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.

Our information suggests that insiders maintain a significant holding in Tudor Gold Corp.. Insiders have a CA$47m stake in this CA$262m 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.

The general public-- including retail investors -- own 49% stake in the company, and hence can't easily be ignored. 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 27%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

It's always worth thinking about the different groups who own shares in a company. But to understand Tudor Gold better, we need to consider many other factors. Be aware that Tudor Gold is showing 5 warning signs in our investment analysis , and 3 of those can't be ignored...

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.

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