In This Article:
Key Insights
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The considerable ownership by individual investors in Man Group indicates that they collectively have a greater say in management and business strategy
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The top 25 shareholders own 37% of the company
If you want to know who really controls Man Group Plc (LON:EMG), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 58% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While the holdings of individual investors took a hit after last week’s 4.8% price drop, institutions with their 41% holdings also suffered.
In the chart below, we zoom in on the different ownership groups of Man Group.
View our latest analysis for Man Group
What Does The Institutional Ownership Tell Us About Man Group?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Man Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Man Group's earnings history below. Of course, the future is what really matters.
Man Group is not owned by hedge funds. The Vanguard Group, Inc. is currently the company's largest shareholder with 5.4% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.2% and 4.5%, of the shares outstanding, respectively.
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 Man Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.