U.S. markets open in 6 hours 35 minutes
  • S&P Futures

    3,300.75
    -33.00 (-0.99%)
     
  • Dow Futures

    27,121.00
    -287.00 (-1.05%)
     
  • Nasdaq Futures

    11,210.25
    -127.50 (-1.12%)
     
  • Russell 2000 Futures

    1,490.60
    -16.40 (-1.09%)
     
  • Crude Oil

    38.97
    -0.32 (-0.81%)
     
  • Gold

    1,892.40
    -10.80 (-0.57%)
     
  • Silver

    23.90
    -0.55 (-2.25%)
     
  • EUR/USD

    1.1733
    -0.0012 (-0.11%)
     
  • 10-Yr Bond

    0.6450
    0.0000 (0.00%)
     
  • Vix

    26.27
    +0.08 (+0.31%)
     
  • GBP/USD

    1.2834
    -0.0025 (-0.20%)
     
  • USD/JPY

    105.5680
    -0.0870 (-0.08%)
     
  • BTC-USD

    10,746.29
    -97.92 (-0.90%)
     
  • CMC Crypto 200

    230.33
    +0.66 (+0.29%)
     
  • FTSE 100

    5,897.50
    -30.43 (-0.51%)
     
  • Nikkei 225

    23,185.12
    -353.98 (-1.50%)
     

Could MMA Capital Management LLC’s (NASDAQ:MMAC) Investor Composition Impacts Your Returns?

Every investor in MMA Capital Management LLC (NASDAQ:MMAC) should be aware of the most powerful shareholder groups. 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, ‘Don’t tell me what you think, tell me what you have in your portfolio.’

MMA Capital Management is a smaller company with a market capitalization of US$151m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s delve deeper into each type of owner, to discover more about MMAC.

See our latest analysis for MMA Capital Management

NasdaqCM:MMAC Ownership Summary October 12th 18
NasdaqCM:MMAC Ownership Summary October 12th 18

What Does The Institutional Ownership Tell Us About MMA Capital Management?

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.

We can see that MMA Capital Management does have institutional investors; and they hold 21% of the stock. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of MMA Capital Management, (below). Of course, keep in mind that there are other factors to consider, too.

NasdaqCM:MMAC Income Statement Export October 12th 18
NasdaqCM:MMAC Income Statement Export October 12th 18

Hedge funds don’t have many shares in MMA Capital Management. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of MMA Capital Management

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.

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.

Our most recent data indicates that insiders own some shares in MMA Capital Management LLC. As individuals, the insiders collectively own US$15m worth of the US$151m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly retail investors, hold a substantial 67% stake in MMAC, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

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.

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 .

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.

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 editorial-team@simplywallst.com.