With 42% ownership, Magnetic Resources NL (ASX:MAU) insiders have a lot riding on the company's future

In This Article:

Key Insights

  • Magnetic Resources' significant insider ownership suggests inherent interests in company's expansion

  • The top 6 shareholders own 52% of the company

  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Magnetic Resources NL (ASX:MAU), it is important to understand the ownership structure of the business. With 42% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's delve deeper into each type of owner of Magnetic Resources, beginning with the chart below.

Check out our latest analysis for Magnetic Resources

ownership-breakdown
ownership-breakdown

What Does The Lack Of Institutional Ownership Tell Us About Magnetic Resources?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Magnetic Resources, for yourself, below.

earnings-and-revenue-growth
earnings-and-revenue-growth

Magnetic Resources is not owned by hedge funds. Chimseng Oan is currently the largest shareholder, with 14% of shares outstanding. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 10% by the third-largest shareholder. Furthermore, CEO George Sakalidis is the owner of 3.1% of the company's shares.

We did some more digging and found that 6 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.