With 85% ownership, Golden Matrix Group, Inc. (NASDAQ:GMGI) insiders have a lot riding on the company's future

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editorial-team@simplywallst.com (Simply Wall St)

Wed, Nov 6, 2024, 5:37 AM 4 min read

To get a sense of who is truly in control of Golden Matrix Group, Inc. (NASDAQ:GMGI), 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 85% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

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

In the chart below, we zoom in on the different ownership groups of Golden Matrix Group.

See our latest analysis for Golden Matrix Group

ownership-breakdown — NasdaqCM:GMGI Ownership Breakdown November 6th 2024

What Does The Institutional Ownership Tell Us About Golden Matrix Group?

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.

Institutions have a very small stake in Golden Matrix Group. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth — NasdaqCM:GMGI Earnings and Revenue Growth November 6th 2024

Golden Matrix Group is not owned by hedge funds. Aleksandar Milovanovic is currently the largest shareholder, with 59% of shares outstanding. This implies that they have majority interest control of the future of the company. With 13% and 6.7% of the shares outstanding respectively, Anthony Goodman and Zoran Milosevic are the second and third largest shareholders. Anthony Goodman, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Golden Matrix Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems that insiders own more than half the Golden Matrix Group, Inc. stock. This gives them a lot of power. Given it has a market cap of US$316m, that means they have US$267m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Golden Matrix Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Golden Matrix Group has 2 warning signs (and 1 which can't be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list 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.