Mercurity Fintech Holding's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
54% of the business is held by the top 5 shareholders
Every investor in Mercurity Fintech Holding Inc. (NASDAQ:MFH) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 39% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 23% decrease in the stock price last week, retail investors suffered the most losses, but insiders who own 27% stock also took a hit.
Let's take a closer look to see what the different types of shareholders can tell us about Mercurity Fintech Holding.
NasdaqCM:MFH Ownership Breakdown December 23rd 2024
What Does The Institutional Ownership Tell Us About Mercurity Fintech Holding?
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.
We can see that Mercurity Fintech Holding does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Mercurity Fintech Holding, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqCM:MFH Earnings and Revenue Growth December 23rd 2024
Mercurity Fintech Holding is not owned by hedge funds. Our data shows that Apollo Multi Asset Management LLP is the largest shareholder with 23% of shares outstanding. For context, the second largest shareholder holds about 8.6% of the shares outstanding, followed by an ownership of 7.6% by the third-largest shareholder.
Our research also brought to light the fact that roughly 54% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Mercurity Fintech Holding
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Mercurity Fintech Holding Inc.. Insiders own US$94m worth of shares in the US$341m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 39% stake in Mercurity Fintech Holding. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Our data indicates that Private Companies hold 9.9%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Mercurity Fintech Holding better, we need to consider many other factors. For example, we've discovered 3 warning signs for Mercurity Fintech Holding that you should be aware of before investing here.
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.
