Key Insights

• The considerable ownership by individual investors in AMA Group indicates that they collectively have a greater say in management and business strategy

• The top 25 shareholders own 45% of the company

• Institutional ownership in AMA Group is 15%

Every investor in AMA Group Limited (ASX:AMA) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 26% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

And institutions on the other hand have a 15% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

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

See our latest analysis for AMA Group

What Does The Institutional Ownership Tell Us About AMA Group?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

AMA Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of AMA Group, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in AMA Group. Looking at our data, we can see that the largest shareholder is azValor Asset Management SGIIC, S.A.U. with 6.5% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.4% and 5.1% of the stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of AMA Group

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.