In spite of recent selling, insiders still control 78% of Golden Matrix Group, Inc. (NASDAQ:GMGI)
Key Insights
Significant insider control over Golden Matrix Group implies vested interests in company growth
The largest shareholder of the company is Aleksandar Milovanovic with a 58% stake
To get a sense of who is truly in control of Golden Matrix Group, Inc. (NASDAQ:GMGI), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 78% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Even though insiders have sold shares recently, the group owns the most numbers of shares in the company.
Let's delve deeper into each type of owner of Golden Matrix Group, beginning with the chart below.
Check out our latest analysis for Golden Matrix Group
What Does The Lack Of Institutional Ownership Tell Us About Golden Matrix Group?
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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. 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 Golden Matrix Group, for yourself, below.
Our data indicates that hedge funds own 6.2% of Golden Matrix Group. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. The company's largest shareholder is Aleksandar Milovanovic, with ownership of 58%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 7.2% of the shares outstanding, followed by an ownership of 6.8% by the third-largest shareholder. Anthony Goodman, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Golden Matrix Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own the majority of Golden Matrix Group, Inc.. This means they can collectively make decisions for the company. So they have a US$214m stake in this US$275m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Golden Matrix Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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. For instance, we've identified 4 warning signs for Golden Matrix Group (3 are a bit unpleasant) that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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