Yahoo Finance Macmahon Holdings Limited (ASX:MAH) stock most popular amongst public companies who own 45%, while individual investors hold 31%
Key Insights
Significant control over Macmahon Holdings by public companies implies that the general public has more power to influence management and governance-related decisions
52% of the business is held by the top 2 shareholders
Institutions own 17% of Macmahon Holdings
To get a sense of who is truly in control of Macmahon Holdings Limited (ASX:MAH), it is important to understand the ownership structure of the business. With 45% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Individual investors, on the other hand, account for 31% of the company's stockholders.
Let's delve deeper into each type of owner of Macmahon Holdings, beginning with the chart below.
Check out our latest analysis for Macmahon Holdings
What Does The Institutional Ownership Tell Us About Macmahon Holdings?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Macmahon Holdings 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 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. Looking at our data, we can see that the largest shareholder is PT Amman Mineral Internasional Tbk with 45% of shares outstanding. Paradice Investment Management Pty Ltd. is the second largest shareholder owning 6.7% of common stock, and United Super Pty Ltd holds about 5.1% of the company stock.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 some shares in Macmahon Holdings Limited. In their own names, insiders own AU$11m worth of stock in the AU$389m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 31% stake in 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
We can see that public companies hold 45% of the Macmahon Holdings shares on issue. 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. Be aware that Macmahon Holdings is showing 1 warning sign in our investment analysis , you should know about...
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
