Mpact Limited's (JSE:MPT) largest shareholders are public companies with 34% ownership, individual investors own 28%

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Simply Wall St

Thu, Sep 7, 2023, 1:11 AM 4 min read

Key Insights

The considerable ownership by public companies in Mpact indicates that they collectively have a greater say in management and business strategy
The top 3 shareholders own 52% of the company
Recent sales by insiders

Every investor in Mpact Limited (JSE:MPT) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 28% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Mpact.

View our latest analysis for Mpact

ownership-breakdown — JSE:MPT Ownership Breakdown September 7th 2023

What Does The Institutional Ownership Tell Us About Mpact?

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.

Mpact already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Mpact, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — JSE:MPT Earnings and Revenue Growth September 7th 2023

Hedge funds don't have many shares in Mpact. Our data shows that Caxton and CTP Publishers and Printers Limited is the largest shareholder with 34% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 10% and 7.0%, of the shares outstanding, respectively. Furthermore, CEO Bruce Strong is the owner of 1.0% of the company's shares.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Mpact

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in Mpact Limited. It has a market capitalization of just R4.4b, and insiders have R131m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in Mpact. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 10%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

We can see that public companies hold 34% of the Mpact shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Mpact better, we need to consider many other factors. For instance, we've identified 3 warning signs for Mpact that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.