Key Insights

• Mader Group's significant insider ownership suggests inherent interests in company's expansion

• Luke Mader owns 57% of the company

• Recent purchases by insiders

If you want to know who really controls Mader Group Limited (ASX:MAD), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 77% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

It's interesting to note that insiders have been buying shares recently. Their expectations, however, were not satisfied, as the market cap dropped to AU$1.3b over the past week.

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

View our latest analysis for Mader Group

What Does The Institutional Ownership Tell Us About Mader Group?

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.

Since institutions own only a small portion of Mader Group, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Mader Group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Mader Group's case, its Top Key Executive, Luke Mader, is the largest shareholder, holding 57% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 20% and 1.1%, of the shares outstanding, respectively.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Mader 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.