The big shareholder groups in Managed Accounts Holdings Limited (ASX:MGP) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
With a market capitalization of AU$54m, Managed Accounts Holdings is a small cap stock, so it might not be well known by many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about MGP.
See our latest analysis for Managed Accounts Holdings
What Does The Institutional Ownership Tell Us About Managed Accounts Holdings?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Managed Accounts Holdings does have institutional investors; and they hold 21% 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 Managed Accounts Holdings’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Managed Accounts Holdings. 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 Managed Accounts Holdings
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. 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 information suggests that insiders maintain a significant holding in Managed Accounts Holdings Limited. Insiders have a AU$16m stake in this AU$54m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.