Insiders hold 48% of Magnetic Resources NL (ASX:MAU), and they've been buying recently
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A look at the shareholders of Magnetic Resources NL (ASX:MAU) can tell us which group is most powerful. The group holding the most number of shares in the company, around 48% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
And looking at our data, we can see that insiders have bought shares recently. This could be interpreted as insiders anticipating a rise in stock prices in the near future.
In the chart below, we zoom in on the different ownership groups of Magnetic Resources.
Check out our latest analysis for Magnetic Resources
What Does The Lack Of Institutional Ownership Tell Us About Magnetic Resources?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
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 might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Magnetic Resources is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Chimseng Oan with 15% of shares outstanding. Hian Chan is the second largest shareholder owning 13% of common stock, and Kong Lim Choon holds about 6.7% of the company stock. In addition, we found that George Sakalidis, the CEO has 3.5% of the shares allocated to their name.
On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
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. 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.