Can We See Significant Insider Ownership On The Magellan Aerospace Corporation (TSE:MAL) Share Register? – Simply Wall St

The big shareholder groups in Magellan Aerospace Corporation (TSE:MAL) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, Dont tell me what you think, tell me what you have in your portfolio.

Magellan Aerospace is not a large company by global standards. It has a market capitalization of CA$820m, which means it wouldnt have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), its seems that institutions are noticeable on the share registry. Lets delve deeper into each type of owner, to discover more about Magellan Aerospace.

View our latest analysis for 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 its included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Magellan Aerospace already has institutions on the share registry. Indeed, they own 5.7% of the company. 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. Its therefore worth looking at Magellan Aerospaces earnings history, below. Of course, the future is what really matters.

Magellan Aerospace is not owned by hedge funds. Our data shows that Royce & Associates, LP is the largest shareholder with 1.7% of shares outstanding. Next, we have Invesco Ltd. and Dimensional Fund Advisors L.P. as the second and third largest shareholders, holding 0.7% and 0.6%, of the shares outstanding, respectively.

Our studies suggest that the top 9 shareholders collectively control less than 50% of the companys shares, meaning that the companys shares are widely disseminated and there is no dominant shareholder.

Researching institutional ownership is a good way to gauge and filter a stocks expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems that insiders own more than half the Magellan Aerospace Corporation stock. This gives them a lot of power. So they have a CA$638m stake in this CA$820m 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.

The general public holds a 16% stake in MAL. While this group cant necessarily call the shots, it can certainly have a real influence on how the company is run.

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: Weve spotted 1 warning sign for Magellan Aerospace you should be aware of.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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