Retail investors who hold 51% of Energy Fuels Inc. (TSE:EFR) gained 16%, institutions profited as well

Simply Wall St · 04/14 11:06

Key Insights

  • Energy Fuels' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 25 shareholders own 38% of the company
  • Recent purchases by insiders
Our free stock report includes 1 warning sign investors should be aware of before investing in Energy Fuels. Read for free now.

To get a sense of who is truly in control of Energy Fuels Inc. (TSE:EFR), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Retail investors gained the most after market cap touched CA$1.2b last week, while institutions who own 47% also benefitted.

Let's delve deeper into each type of owner of Energy Fuels, beginning with the chart below.

See our latest analysis for Energy Fuels

ownership-breakdown
TSX:EFR Ownership Breakdown April 14th 2025

What Does The Institutional Ownership Tell Us About Energy Fuels?

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. We would expect most companies to have some institutions on the register, especially if they are growing.

Energy Fuels already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Energy Fuels' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
TSX:EFR Earnings and Revenue Growth April 14th 2025

We note that hedge funds don't have a meaningful investment in Energy Fuels. Looking at our data, we can see that the largest shareholder is ALPS Advisors, Inc. with 5.9% of shares outstanding. The second and third largest shareholders are BlackRock, Inc. and Mirae Asset Global Investments Co., Ltd., with an equal amount of shares to their name at 5.4%.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Energy Fuels

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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.

We can see that insiders own shares in Energy Fuels Inc.. In their own names, insiders own CA$26m worth of stock in the CA$1.2b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 51% of Energy Fuels shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Energy Fuels you should know about.

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.