Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!

If you want to know who really controls OFX Group Limited (ASX:OFX), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of AU$400m, OFX Group is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about OFX.

See our latest analysis for OFX Group

What Does The Institutional Ownership Tell Us About OFX 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.

We can see that OFX Group does have institutional investors; and they hold 49% of the stock. 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. 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 OFX Group's earnings history, below. Of course, the future is what really matters.

Hedge funds don't have many shares in OFX Group. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of OFX Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in OFX Group Limited. In their own names, insiders own AU$40m worth of stock in the AU$400m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.