【transposing b flat to e flat】What Type Of Shareholder Owns McGrath Limited’s (ASX:MEA)?

发布时间：2024-09-29 10:15:05 来源：weddings at lakeside beach south lake tahoe ca 作者：Fashion

A look at the shareholders of McGrath Limited (

ASX:MEA

) can tell us which group is transposing b flat to e flatmost powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’

McGrath is a smaller company with a market capitalization of AU$49m, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about MEA.

View our latest analysis for McGrath

ASX:MEA Ownership Summary January 3rd 19

What Does The Institutional Ownership Tell Us About McGrath?

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.

McGrath already has institutions on the share registry. Indeed, they own 16% of 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 McGrath’s earnings history, below. Of course, the future is what really matters.

ASX:MEA Income Statement Export January 3rd 19

McGrath is not owned by hedge funds. 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 McGrath

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our most recent data indicates that insiders own a reasonable proportion of McGrath Limited. Insiders have a AU$19m stake in this AU$49m business. I 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.

Story continues

General Public Ownership

The general public holds a 27% stake in MEA. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 18%, of the MEA stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand McGrath 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

.

Ultimately

the future is most important

. You can access this

free

report on analyst forecasts for the company

.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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