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• The considerable ownership by individual investors in Catalyst Metals indicates that they collectively have a greater say in management and business strategy

• The top 25 shareholders own 39% of the company

• Insiders have sold recently

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If you want to know who really controls Catalyst Metals Limited (ASX:CYL), then you’ll have to look at the makeup of its share registry. We can see that individual investors own the lion’s share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of individual investors took a hit after last week’s 6.7% price drop, institutions with their 30% holdings also suffered.

In the chart below, we zoom in on the different ownership groups of Catalyst Metals.

View our latest analysis for Catalyst Metals

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Catalyst Metals does have institutional investors; and they hold a good portion of the company’s stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Catalyst Metals, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don’t have a meaningful investment in Catalyst Metals. Our data shows that State Street Global Advisors, Inc. is the largest shareholder with 5.1% of shares outstanding. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 4.2% by the third-largest shareholder. Additionally, the company’s CEO James de Crespigny directly holds 1.4% of the total shares outstanding.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, meaning that the company’s shares are widely disseminated and there is no dominant shareholder.

Story Continues

Republic Bancorp (RBCA.A) shares have slightly rebounded over the past week after recent declines during the past month and quarter. Investors are keeping an eye on the stock’s valuation in light of its long-term performance.

See our latest analysis for Republic Bancorp.

Republic Bancorp’s latest uptick has eased some of the recent pressure. However, momentum has yet to recover from this year’s declines. Despite a strong run over the past three and five years, its 1-year total shareholder return of -10.38% shows that sentiment has cooled and investors remain cautious as they reassess value at the current $67.83 share price.

If you’re interested in where other fast-growing, high-conviction companies are headed next, this is the perfect moment to discover fast growing stocks with high insider ownership

With recent price swings and a share price still below analyst targets, the central question is whether Republic Bancorp is currently undervalued or if the market has already factored in its growth prospects. Is there a genuine buying opportunity left?

Republic Bancorp is trading at a price-to-earnings (P/E) ratio of 10.4x, notably below its industry peers and the wider US market. With shares last closing at $67.83, the market appears to be discounting future growth potential relative to competitors.

The price-to-earnings ratio measures how much investors are willing to pay for each dollar of a company’s earnings. For banks like Republic Bancorp, the P/E ratio helps illustrate how the market perceives both profitability and growth prospects.

Republic Bancorp’s multiple is lower than the US Banks industry average of 11.2x, as well as the peer group average of 12.4x. This suggests that, at current levels, the stock is more modestly valued than most rivals and could represent an attractive entry point if future performance outpaces expectations. However, compared to our estimated fair P/E ratio of 8.9x, it is still trading above what our models consider justified, so there is room for the market to adjust downward if growth disappoints.

Explore the SWS fair ratio for Republic Bancorp

Result: Price-to-Earnings of 10.4x (UNDERVALUED)

However, risks remain if revenue growth continues to stall or if net income declines further. This could challenge the undervaluation thesis and limit upside.

Find out about the key risks to this Republic Bancorp narrative.

Looking from a different angle, our SWS DCF model values Republic Bancorp shares at $109.46, which is significantly higher than the current market price. This suggests the stock may be deeply undervalued and challenges the conclusions drawn from the P/E comparison. Could the market be missing something bigger here?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Republic Bancorp for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 928 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Readers who want to dig deeper or come to their own conclusions can assemble a personal narrative in just a few minutes. Do it your way

A great starting point for your Republic Bancorp research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This 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.

Companies discussed in this article include RBCAA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com