What Kind Of Shareholder Appears On The Manhattan Bridge Capital, Inc.'s (NASDAQ:LOAN) Shareholder Register?

By
Simply Wall St
Published
January 02, 2020
NasdaqCM:LOAN
Source: Shutterstock

Every investor in Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.

Manhattan Bridge Capital is a smaller company with a market capitalization of US$61m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Manhattan Bridge Capital.

View 3 warning signs we detected for Manhattan Bridge Capital

NasdaqCM:LOAN Ownership Summary, January 2nd 2020
NasdaqCM:LOAN Ownership Summary, January 2nd 2020

What Does The Institutional Ownership Tell Us About Manhattan Bridge Capital?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors own 13% of Manhattan Bridge Capital. 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. It's therefore worth looking at Manhattan Bridge Capital's earnings history, below. Of course, the future is what really matters.

NasdaqCM:LOAN Income Statement, January 2nd 2020
NasdaqCM:LOAN Income Statement, January 2nd 2020

Manhattan Bridge Capital is not owned by hedge funds. The company's CEO Assaf Ran is the largest shareholder with 26% of shares outstanding. The second largest shareholder with 3.1%, is The Vanguard Group, Inc., followed by Bard Associates Inc., with an ownership of 2.3%.

On studying our ownership data, we found that 20 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While it makes sense to study institutional ownership data for a company, It also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Manhattan Bridge Capital

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that insiders maintain a significant holding in Manhattan Bridge Capital, Inc.. Insiders have a US$17m stake in this US$61m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public -- mostly retail investors -- own 59% of Manhattan Bridge Capital. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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.

For example, we've discovered 3 warning signs for Manhattan Bridge Capital which any shareholder or potential investor 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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