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Key Insights

• Insiders appear to have a vested interest in Magellan Aerospace's growth, as seen by their sizeable ownership

• The largest shareholder of the company is Norman Edwards with a 75% stake

• 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 Magellan Aerospace Corporation (TSE:MAL), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 79% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's take a closer look to see what the different types of shareholders can tell us about Magellan Aerospace.

View our latest analysis for Magellan Aerospace

What Does The Institutional Ownership Tell Us About Magellan Aerospace?

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.

Less than 5% of Magellan Aerospace is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Magellan Aerospace is not owned by hedge funds. Our data suggests that Norman Edwards, who is also the company's Top Key Executive, holds the most number of shares at 75%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. In comparison, the second and third largest shareholders hold about 3.9% and 1.7% of the stock.

While studying 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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Magellan Aerospace

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.