Yahoo Finance Owning 79% in Magellan Aerospace Corporation (TSE:MAL) means that insiders are heavily invested in the company's future
Key Insights
Significant insider control over Magellan Aerospace implies vested interests in company growth
Norman Edwards owns 75% of the company
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
Every investor in Magellan Aerospace Corporation (TSE:MAL) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 79% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
So it follows, every decision made by insiders of Magellan Aerospace regarding the company's future would be crucial to them.
Let's delve deeper into each type of owner of Magellan Aerospace, beginning with the chart below.
View our latest analysis for Magellan Aerospace
What Does The Institutional Ownership Tell Us About Magellan Aerospace?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Since institutions own only a small portion of Magellan Aerospace, 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. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
Hedge funds don't have many shares in Magellan Aerospace. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Magellan Aerospace's case, its Top Key Executive, Norman Edwards, is the largest shareholder, holding 75% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 3.9% and 1.6%, of the shares outstanding, respectively.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Magellan Aerospace
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. 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.
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 Magellan Aerospace Corporation. This means they can collectively make decisions for the company. So they have a CA$322m stake in this CA$408m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 18% stake in Magellan Aerospace. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Magellan Aerospace better, we need to consider many other factors.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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