In This Article:
Key Insights
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Significant control over Man Group by individual investors implies that the general public has more power to influence management and governance-related decisions
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41% of the business is held by the top 25 shareholders
We've discovered 2 warning signs about Man Group. View them for free.
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. We can see that individual investors own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Institutions, on the other hand, account for 45% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
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.
Man 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Man Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Man Group is not owned by hedge funds. The Vanguard Group, Inc. is currently the company's largest shareholder with 5.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.3% and 4.6% of the stock.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.