In This Article:
Key Insights
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MA Financial Group's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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The top 9 shareholders own 51% of the company
A look at the shareholders of MA Financial Group Limited (ASX:MAF) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Individual insiders, on the other hand, account for 28% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
In the chart below, we zoom in on the different ownership groups of MA Financial Group.
View our latest analysis for MA Financial Group
What Does The Institutional Ownership Tell Us About MA Financial Group?
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.
As you can see, institutional investors have a fair amount of stake in MA Financial Group. 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 MA Financial Group, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in MA Financial Group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In MA Financial Group's case, its Top Key Executive, Andrew Pridham, is the largest shareholder, holding 19% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.0% and 7.4%, of the shares outstanding, respectively. Additionally, the company's CEO Julian Biggins directly holds 3.1% of the total shares outstanding.
We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.