Yahoo Finance Macmahon Holdings Limited's (ASX:MAH) top owners are public companies with 45% stake, while 31% is held by individual investors
Key Insights
The considerable ownership by public companies in Macmahon Holdings indicates that they collectively have a greater say in management and business strategy
The top 2 shareholders own 52% of the company
If you want to know who really controls Macmahon Holdings Limited (ASX:MAH), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 45% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 31% ownership in the company.
In the chart below, we zoom in on the different ownership groups of Macmahon Holdings.
See our latest analysis for Macmahon Holdings
What Does The Institutional Ownership Tell Us About Macmahon 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.
Macmahon Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Macmahon Holdings' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Macmahon Holdings. PT Amman Mineral Internasional Tbk is currently the largest shareholder, with 45% of shares outstanding. With 6.7% and 5.1% of the shares outstanding respectively, Paradice Investment Management Pty Ltd. and United Super Pty Ltd are the second and third largest shareholders.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.
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 Macmahon 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that insiders own shares in Macmahon Holdings Limited. It has a market capitalization of just AU$599m, and insiders have AU$17m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Macmahon Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Public Company Ownership
Public companies currently own 45% of Macmahon Holdings stock. 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Macmahon Holdings you should know about.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
