Key Insights
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MA Financial Group’s significant insider ownership suggests inherent interests in company’s expansion
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A total of 4 investors have a majority stake in the company with 52% ownership
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Insiders have been selling lately
To get a sense of who is truly in control of MA Financial Group Limited (ASX:MAF), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 32% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
Despite selling some shares recently, insiders control a good portion of the company’s stock.
Let’s take a closer look to see what the different types of shareholders can tell us about MA Financial Group.
View our latest analysis for MA Financial Group
What Does The Institutional Ownership Tell Us About MA Financial 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.
We can see that MA Financial Group does have institutional investors; and they hold a good portion of the company’s stock. 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. 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 MA Financial Group’s earnings history below. Of course, the future is what really matters.
MA Financial Group is not owned by hedge funds. 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 22% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 14% and 9.1%, of the shares outstanding, respectively. Furthermore, CEO Julian Biggins is the owner of 4.3% of the company’s shares.
On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of MA Financial Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
It seems insiders own a significant proportion of MA Financial Group Limited. Insiders own AU$237m worth of shares in the AU$742m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over MA Financial Group. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 14%, of the company’s shares. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Public Company Ownership
It appears to us that public companies own 14% of MA Financial Group. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example – MA Financial Group has 4 warning signs (and 2 which shouldn’t be ignored) we think you should know about.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
