Key Insights

• Significant insider control over Magnetic Resources implies vested interests in company growth

• A total of 5 investors have a majority stake in the company with 50% ownership

• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Magnetic Resources NL (ASX:MAU), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 44% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So it follows, every decision made by insiders of Magnetic Resources regarding the company's future would be crucial to them.

In the chart below, we zoom in on the different ownership groups of Magnetic Resources.

See our latest analysis for Magnetic Resources

What Does The Lack Of Institutional Ownership Tell Us About Magnetic Resources?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Magnetic Resources' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Magnetic Resources. Chimseng Oan is currently the largest shareholder, with 14% of shares outstanding. Hian Chan is the second largest shareholder owning 12% of common stock, and Dale Alcock Homes Pty. Ltd. holds about 11% of the company stock. Additionally, the company's CEO George Sakalidis directly holds 3.3% of the total shares outstanding.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Magnetic Resources

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.