key insights
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Significant insider control over MA Financial Group suggests vested interest in company growth
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Top 4 shareholders own 55% of the company
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Recent Sales by Insiders
If you want to know who really controls MA Financial Group Limited (ASX:MAF), then you'll have to look at the makeup of its share registry. The group with the largest stake in the company (about 31%, to be exact) are individual insiders. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
This group owns the most shares in the company, even though insiders recently sold shares.
The chart below zooms in on the different ownership groups for MA Financial Group.
Check out our latest analysis for MA Financial Group.
What does institutional ownership indicate about MA Financial Group?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in MA Financial Group. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see MA Financial Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Note that hedge funds don't have a meaningful investment in MA Financial Group. From our data, we estimate that the largest shareholder is Andrew Pridham (also holds the title Top Key Executive) with his 22% of outstanding shares. It is usually considered a good sign when insiders own a significant number of shares in a company, but in this case we see company insiders playing the role of key stakeholders. I'm glad. Meanwhile, the second and third largest shareholders hold 14% and 11% of the shares outstanding, respectively. Furthermore, CEO Julian Biggins owns his 3.3% of the company's shares.
On further investigation, we found that 55% of the stock is owned by the top 4 shareholders. In other words, these shareholders have a significant say in the company's decisions.
While researching institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. . Quite a few analysts cover this stock, so you can find out its expected growth quite easily.
MA Financial Group Insider Ownership
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Insider ownership is positive when it signals leaders 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 depending on the situation.
It appears that insiders own a significant portion of MA Financial Group Limited. Insiders have a AU$245m stake in the AU$793m business. This could suggest that the founders still own a large number of shares. Click here to see if they are buying or selling.
Open to the public
The general public (usually retail investors) owns 28% of MA Financial Group's shares. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
We can see that Private companies own 14% of the shares outstanding. It might be worth looking into this further. If insiders or other parties have an interest in these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Public company ownership
It appears to us that public companies own 14% of MA Financial Group. This may be a strategic interest and both companies may have related business interests. Maybe they broke up. This holding is probably worth further investigation.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. For example, we discovered that 4 warning signs for MA Financial Group (You can't ignore 2!) Here's what you need to know before investing.
after all the future is most important.You can access this free A report on analyst forecasts for a company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
