Exploring Sandstorm Gold Ltd. (SAND) Investor Profile: Who’s Buying and Why?

You're looking at Sandstorm Gold Ltd. (SAND) and trying to figure out if the smart money has already made its move, especially since the Royal Gold Inc. acquisition closed in October 2025. Honestly, the investor profile tells a clear story: Institutional confidence is defintely high, with professional investors holding a significant 54.6% of the outstanding shares as of mid-2025, validating the company's royalty and streaming model.

But the real question is why they bought in, particularly when the company was already posting record results, like $51.4 million in revenue and $16.9 million in net income for Q2 2025. Was it the pure-play gold exposure, or was it the anticipated premium from the merger? The $3.5 billion Royal Gold deal, where Sandstorm shareholders retained 23% of the combined entity, fundamentally changed the investment thesis, promising a larger, more liquid vehicle. So, are these investors looking for a gold royalty business, or are they betting on the re-rating potential of a newly-formed industry giant? Let's map out exactly who is holding the stock-from Orion Resource Partners LP to Van ECK Associates Corp-and what their strategic calculus is now that the deal is done.

Who Invests in Sandstorm Gold Ltd. (SAND) and Why?

You want to know who is buying Sandstorm Gold Ltd. (SAND) and what their endgame is, especially with the Royal Gold acquisition closing in Q4 2025. The direct takeaway is that Sandstorm's ownership base is dominated by institutional money seeking low-volatility gold exposure and massive long-term growth, but the recent acquisition has also drawn in merger arbitrage funds.

Honestly, the biggest players are sophisticated institutions. They own the majority of the company, and their overwhelming support for the Royal Gold deal-with Mission Statement, Vision, & Core Values of Sandstorm Gold Ltd. (SAND). as the foundation-shows a clear consensus on the path to realizing intrinsic value. This isn't a retail-driven stock; it's a professional's play.

Key Investor Types: The Institutional Powerhouse

As of late 2025, the ownership structure of Sandstorm Gold Ltd. is heavily skewed toward institutional investors, who hold roughly 54.6% of the outstanding shares, totaling about 160.17 million shares. This level of institutional confidence provides a stable base for the stock. Retail investors, or the general public, still hold a significant portion at approximately 37%, but they don't drive the major strategic decisions.

Insider ownership, which is the stake held by executives and directors, is relatively low at about 1.26%, which is typical for a mature royalty company where the focus shifts from founder equity to external capital for growth. Venture Capital/Private Equity (VC/PE) firms also have a notable stake of around 7.11%, indicating a belief in the long-term, high-growth royalty model.

Here's the quick breakdown of the major holders and their positions from 2025 filings:

Investment Motivations: Growth and Deleveraging

Investors are attracted to Sandstorm Gold Ltd. for a few concrete reasons, all tied to the royalty and streaming business model. The motivation isn't a high dividend-it's pure growth and the defensive nature of gold assets. The company's 2025 financial performance has been a massive draw, showing strong operational leverage.

For example, in Q2 2025, the company reported record revenue of $51.4 million, a 24% year-over-year increase. Plus, the cash operating margin hit a record $2,981 per attributable gold equivalent ounce. That kind of margin is what you want in a royalty business-it's nearly pure profit flow.

The core motivations are clear:

• Massive Growth Pipeline: Production is forecasted to be between 65,000 and 80,000 gold equivalent ounces (GEOs) in 2025, with a projected climb to 150,000 GEOs by 2030. That's a 130%-plus increase in five years.
• Financial Deleveraging: The company has been aggressively paying down debt, reducing the outstanding balance on its revolving credit facility to around $340 million as of early 2025. Less debt means more cash flow for future acquisitions or shareholder returns.
• Low Volatility Gold Exposure: With a beta of just 0.34, Sandstorm Gold Ltd. offers a less volatile way to invest in gold compared to the broader market, making it a good portfolio hedge for risk-conscious investors.

The pending acquisition by Royal Gold Inc., valued at approximately $3.5 billion, is the final piece of the puzzle, promising to create a more diversified, industry-leading entity. That's a clear path to a valuation re-rating.

Investment Strategies: Value, Growth, and Arbitrage

You see three main strategies at play among Sandstorm Gold Ltd. investors right now. The mix of long-term holders and short-term traders is what makes the stock dynamic, defintely.

Long-Term Growth and Value Investing: This is the dominant strategy for the large institutional holders like Van ECK Associates Corp. They are buying into the long-term vision of becoming a major player in the royalty space. They see the company trading at a discount compared to peers and believe the 150,000 GEO target by 2030 will close that valuation gap. Management itself signaled a belief in undervaluation by renewing its share buyback plan in March 2025, authorizing the repurchase of up to 20 million common shares.

Merger Arbitrage: The announcement of the Royal Gold acquisition in July 2025, which is expected to close in Q4 2025, brought in a wave of merger arbitrage funds. These funds buy Sandstorm Gold Ltd. shares and short Royal Gold shares to profit from the small price difference (the spread) between Sandstorm's current price and the implied value of the Royal Gold stock they will receive in the all-share deal. This is a short-term, event-driven strategy that has kept trading volume high.

Precious Metals Hedge: Retail and less-specialized institutional investors use Sandstorm Gold Ltd. as a direct proxy for gold prices. Since royalty companies have fixed costs but benefit directly from rising commodity prices, their margins expand rapidly in a bull market. The record cash operating margin of $2,981 per ounce in Q2 2025 is a perfect example of this leverage at work. They are simply using the stock as a better-than-ETF way to bet on rising gold and silver prices.

Institutional Ownership and Major Shareholders of Sandstorm Gold Ltd. (SAND)

You're looking at Sandstorm Gold Ltd. (SAND) and trying to figure out who's buying and why-it all comes down to the major strategic shift that happened in 2025. The institutional investor profile for Sandstorm Gold Ltd. was defined by the pending acquisition by Royal Gold Inc., a deal valued at approximately $3.5 billion in equity. Before the deal closed in October 2025, professional investors held a substantial stake, validating the company's royalty and streaming model.

This is a company that attracted serious money, and that kind of institutional confidence provides a real floor for the stock.

Top Institutional Investors and Their Holdings

As of the most recent filings before the acquisition's finalization, institutional investors collectively held a significant portion of Sandstorm Gold Ltd.'s outstanding shares, ranging from approximately 51.97% to 67.69%. This high percentage shows that sophisticated capital saw long-term value in the company's portfolio of over 230 royalties.

The largest holders were primarily resource-focused funds and major asset managers. Here's a look at the top positions, reflecting data from the 2025 fiscal year:

• Orion Resource Partners LP: Held a position valued at about $164.28 million, representing roughly 8.8% of the company.
• Van ECK Associates Corp: Maintained a position valued at approximately $132.13 million, or about 6.0% of the company.
• Invesco Ltd.: Had a position valued at around $91.56 million, translating to about 3.3% ownership.

These large stakes confirm that Sandstorm Gold Ltd. was a core holding for major players in the precious metals and resource investment space. For a deeper look at the fundamentals that attracted this capital, you should check out Breaking Down Sandstorm Gold Ltd. (SAND) Financial Health: Key Insights for Investors.

Changes in Ownership: The Royal Gold Inc. Effect

The institutional ownership landscape saw dramatic, but explainable, shifts in the third quarter of 2025 due to the Royal Gold Inc. acquisition. The overall institutional stake saw a significant net decrease in shares held, dropping by about 158.22 million shares year-over-year as of September 2025. This wasn't a loss of faith, but a mechanical change as investors positioned themselves for the all-stock merger.

Here's the quick math: when a merger is announced, arbitrage funds and other investors will often sell the target company's stock (Sandstorm Gold Ltd.) and buy the acquirer's stock (Royal Gold Inc.) to lock in the spread, or simply sell out to avoid the complexity of the share exchange. The data from September 30, 2025, shows this mixed activity clearly:

Some institutions, like Citigroup Inc., took on massive new positions, defintely indicating merger arbitrage activity. Others, like Sprott Inc., substantially reduced their exposure. This is normal volatility leading up to a major corporate action.

Impact of Institutional Investors on Strategy and Price

These large institutional investors played a crucial, final role in Sandstorm Gold Ltd.'s history. Their endorsement was the key to the strategic transformation. The acquisition by Royal Gold Inc. was approved by Sandstorm Gold Ltd. shareholders on October 9, 2025, with a high percentage of votes cast in favor.

What this means is that institutional investors-the ones with the biggest votes-believed the merger would create more value than the company could achieve alone. The expected benefits were clear:

• Enhanced Scale: The combined entity is better positioned to compete for premium streaming deals.
• Broader Interest: The larger market capitalization is expected to attract even more institutional investment.
• Potential Re-rating: Management anticipated the merger would close the valuation gap with mid-cap peers, potentially commanding premium valuations.

When institutions move in size, they don't just affect the stock price; they validate the entire business model and, in this case, dictate the strategic direction. The high level of institutional ownership provided the stability for the stock to trade at a premium, reaching $10.60 per share as of August 19, 2025, a 91% increase from its 52-week low. The transaction was a direct result of institutional support for a value-maximizing event.

Key Investors and Their Impact on Sandstorm Gold Ltd. (SAND)

You want to know who is buying Sandstorm Gold Ltd. (SAND) and why, and the short answer is that the big money-institutional investors-drove the biggest decision of 2025: the merger with Royal Gold Inc. Institutional confidence is high, representing a significant portion of the company's ownership.

As of mid-2025, professional investors held a substantial 54.6% of Sandstorm Gold Ltd.'s outstanding shares. This high level of institutional ownership is a huge vote of confidence, validating the company's streaming and royalty model among sophisticated financial players. These aren't just passive holdings; these investors have the capital and clout to influence major strategic directions, as we saw with the recent acquisition.

The Heavy Hitters: Who Owns the Largest Stakes?

The investor profile for Sandstorm Gold Ltd. is dominated by a few key institutional funds, primarily those specializing in precious metals and resource-focused strategies. Their large positions mean their buying or selling activity can defintely move the stock price.

Here's a quick look at the top institutional shareholders and the size of their positions based on recent 2025 filings:

• Orion Resource Partners LP: Held a position valued at approximately $164.28 million, representing about an 8.8% stake in the company.
• Van ECK Associates Corp: Maintained a position worth around $132.13 million, which translated to roughly a 6.0% stake.
• Invesco Ltd.: Held a stake valued at approximately $91.56 million, or about 3.3% of the company.

These firms are not just gold bugs; they are long-term strategists who see the value in Sandstorm's portfolio of over 230 royalties, which is why they were invested before the major corporate action. They buy into the core business model: providing upfront financing to miners in exchange for a percentage of future production, which generates high-margin, predictable cash flow.

The Ultimate Influence: Recent Corporate Action

The most significant recent move and the clearest example of investor influence came on October 9, 2025, when shareholders overwhelmingly approved the all-share acquisition by Royal Gold Inc. This transaction, which valued Sandstorm Gold Ltd. at an implied value of approximately $3.5 billion, was the culmination of strong financial performance and strategic positioning.

The approval process itself shows the power of the institutional base. Shareholders voted with an incredible 98.68% in favor of the arrangement. That's a near-unanimous endorsement of the board's recommendation. The deal is expected to close on October 20, 2025, and Sandstorm shareholders will receive 0.0625 shares of Royal Gold for each Sandstorm share, retaining about 23% ownership of the combined, larger entity. The goal here is simple: a bigger company attracts even broader institutional interest and commands a premium valuation, which is what every investor wants.

Here's the quick math on the value proposition:

Insider Selling and the Next Steps

While institutional investors were driving the merger, it's also important to watch insider activity, which can signal sentiment. Insiders-executives and directors-own a relatively small stake, about 1.54% of the stock. In the three months leading up to the merger announcement, corporate insiders were net sellers, offloading shares worth $15.1 million. This is common before a major corporate transaction; it's usually executives monetizing stock options or taking some risk off the table after a significant run-up in the stock price.

You should view this insider selling in context; it's not a sign of a lack of faith in the company's Mission Statement, Vision, & Core Values of Sandstorm Gold Ltd. (SAND)., but rather a final step in a successful investment cycle before the company transforms. The key takeaway is that the institutional investors voted overwhelmingly for the merger because it creates a more diversified, industry-leading precious metals streaming company with a stronger financial profile.

Your next action is to understand the Royal Gold Inc. share issuance and what the combined entity's new risk profile looks like. That's where the real opportunity is now.

Market Impact and Investor Sentiment

You're looking at Sandstorm Gold Ltd. (SAND) because you see a company that just made a major strategic move, and you want to know if the big money agrees. The short answer is yes, major shareholders were overwhelmingly positive, which is why the stock saw a massive run-up in 2025. The core sentiment is one of approval for the all-stock acquisition by Royal Gold Inc., a deal valued at approximately $3.5 billion in equity.

This positive sentiment is a direct result of the premium offered and the strategic rationale. Sandstorm shareholders approved the deal with an astounding 98.68% of the votes cast, essentially endorsing the path to becoming a part of a larger, more diversified royalty house. Honestly, when a deal offers a significant premium-in this case, a 21% premium over the 20-day volume-weighted average price (VWAP) before the announcement-it's defintely a clear win for current investors.

• Board unanimously recommended the merger.
• Institutional ownership is strong at 52.0%.
• Proxy advisors backed the deal for premium value.

Recent Market Reactions to the Royal Gold Deal

The market's reaction to the acquisition news was immediate and strong. The stock price reflected this positive institutional sentiment, reaching $10.60 per share by August 19, 2025, representing a remarkable 91% increase from its 52-week low of $5.15. That's a huge move, and it shows the market was pricing in the value of the merger, which was expected to close in October 2025.

The stock's momentum was also fueled by Sandstorm Gold Ltd.'s own strong operational performance in the 2025 fiscal year. For the second quarter of 2025, the company reported record revenue of $51.4 million and record cash operating margins of $2,981 per attributable gold equivalent ounce. Good results plus a premium buyout? That's a recipe for a soaring stock price.

Here's the quick math on the operational strength that underpinned the deal's value:

Analyst Perspectives on the Combined Entity

The consensus analyst rating for Sandstorm Gold Ltd. heading into the merger was 'Hold,' which might sound neutral, but it's a nuanced view. The average price target from analysts was around $11.97, with the highest target at $14.00. This 'Hold' is less about a lack of faith in the company and more about the stock already trading near its implied takeover value.

Analysts see the real opportunity in the combined entity. The merger is expected to attract a broader institutional investor base because the new company will have enhanced scale and improved liquidity. This increased visibility and size can lead to a 're-rating potential' for the stock, meaning the market might assign a higher valuation multiple to the combined company than it did to Sandstorm Gold Ltd. on its own. It's about moving from a mid-tier player to a global leader. You can find more details on the long-term strategy in the Mission Statement, Vision, & Core Values of Sandstorm Gold Ltd. (SAND).

The key takeaway for you is that the future impact of Sandstorm Gold Ltd.'s key investors-now as Royal Gold shareholders-is centered on the benefits of scale: a more mature, diversified portfolio that is expected to generate approximately 87% of its 2025 revenue from precious metals, with 75% specifically from gold. That's a much more stable, attractive investment profile. Finance: monitor the post-merger trading volume of Royal Gold shares to gauge the true impact of the combined entity's liquidity over the next quarter.