Golden Matrix Group, Inc.'s (NASDAQ:GMGI) market cap rose US$29m last week; individual investors who hold 45% profited and so did insiders
Key Insights
Significant control over Golden Matrix Group by individual investors implies that the general public has more power to influence management and governance-related decisions
The top 3 shareholders own 52% of the company
If you want to know who really controls Golden Matrix Group, Inc. (NASDAQ:GMGI), then you'll have to look at the makeup of its share registry. With 45% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Following a 37% increase in the stock price last week, individual investors profited the most, but insiders who own 32% stock also stood to gain from the increase.
Let's delve deeper into each type of owner of Golden Matrix Group, beginning with the chart below.
View our latest analysis for Golden Matrix Group
What Does The Institutional Ownership Tell Us About Golden Matrix Group?
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.
Institutions have a very small stake in Golden Matrix Group. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Our data indicates that hedge funds own 21% of Golden Matrix Group. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. With a 24% stake, CEO Anthony Goodman is the largest shareholder. With 21% and 7.7% of the shares outstanding respectively, Luxor Capital Group, LP and Weiting Feng are the second and third largest shareholders. Interestingly, the third-largest shareholder, Weiting Feng is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Golden Matrix Group
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 information suggests that insiders maintain a significant holding in Golden Matrix Group, Inc.. Insiders own US$34m worth of shares in the US$107m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Golden Matrix Group. 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.
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. Case in point: We've spotted 3 warning signs for Golden Matrix Group you should be aware of, and 1 of them can't be ignored.
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.
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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.
