To get a sense of who is truly in control of Micro-Mechanics (Holdings) Ltd. (SGX:5DD), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 36% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So it follows, every decision made by insiders of Micro-Mechanics (Holdings) regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of Micro-Mechanics (Holdings).
What Does The Lack Of Institutional Ownership Tell Us About Micro-Mechanics (Holdings)?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Micro-Mechanics (Holdings) might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
SGX:5DD Earnings and Revenue Growth November 27th 2024
Hedge funds don't have many shares in Micro-Mechanics (Holdings). Our data shows that Sarcadia LLC is the largest shareholder with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 17% and 5.1%, of the shares outstanding, respectively. Christopher Reid Borch, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Micro-Mechanics (Holdings)
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in Micro-Mechanics (Holdings) Ltd.. It has a market capitalization of just S$225m, and insiders have S$82m worth of shares in their own names. 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.
General Public Ownership
With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Micro-Mechanics (Holdings). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Company Ownership
It seems that Private Companies own 29%, of the Micro-Mechanics (Holdings) stock. 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.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.
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.
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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.
