Stock Analysis

Institutions along with individual investors who hold considerable shares inMaiden Holdings, Ltd. (NASDAQ:MHLD) come under pressure; lose 13% of holdings value

Published
NasdaqCM:MHLD

Key Insights

  • Maiden Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 50% of the business is held by the top 17 shareholders
  • Recent sales by insiders

A look at the shareholders of Maiden Holdings, Ltd. (NASDAQ:MHLD) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 45% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 13% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 28% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Maiden Holdings.

View our latest analysis for Maiden Holdings

NasdaqCM:MHLD Ownership Breakdown December 19th 2024

What Does The Institutional Ownership Tell Us About Maiden Holdings?

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.

We can see that Maiden Holdings does have institutional investors; and they hold a good portion of the company's 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. 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 Maiden Holdings' earnings history below. Of course, the future is what really matters.

NasdaqCM:MHLD Earnings and Revenue Growth December 19th 2024

Our data indicates that hedge funds own 5.3% of Maiden Holdings. 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. Our data shows that Thomas Akin is the largest shareholder with 7.3% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.1% and 6.4%, of the shares outstanding, respectively. Barry Zyskind, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Patrick Haveron directly holds 3.1% of the total shares outstanding.

After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Maiden Holdings

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.

It seems insiders own a significant proportion of Maiden Holdings, Ltd.. It has a market capitalization of just US$134m, and insiders have US$29m worth of shares in their own names. We 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.

General Public Ownership

The general public-- including retail investors -- own 45% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.