key insights
- Significant ownership by retail investors in Mercurity FinTech Holding indicates that retail investors collectively have a greater say in management and business strategy
- A total of 5 investors hold a majority stake in the company, with an ownership of 54%.
- 27% of Mercurity FinTech Holding is owned by insiders
To figure out who really controls Mercurity Fintech Holding Inc. (NASDAQ:MFH), it’s important to understand the business’ ownership structure. We can see that retail investors control the majority, with 39% of the company’s ownership. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
Retail investors were the biggest beneficiaries of last week’s 37% share price increase, but insiders also took a 27% cut.
Let’s take a closer look to see what the different types of shareholders can tell us about Mercurity Fintech Holding.
Check out our latest analysis for Mercurity Fintech Holding.
What does institutional ownership tell us about Mercury Fintech Holdings?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Mercury FinTech Holding. This suggests some credibility among professional investors. But we can’t rely on that fact alone because 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 Mercurity Fintech Holding, (below). Of course, keep in mind that there are other factors to consider as well.
Note that hedge funds don’t have a meaningful investment in Mercury Fintech Holding. Our data shows that Apollo Multi Asset Management LLP is the largest shareholder with ​​23% of shares outstanding. By contrast, the second and third largest shareholders hold about 8.6% and 7.6% of the stock, respectively.
On further investigation, we found that 54% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a significant say in the company’s decisions.
While researching 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. . Based on our information, there aren’t any analyst coverage of this stock, so it’s probably little known.
Insider ownership in Mercury Fintech Holding
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to be held accountable for board decisions.
Our information suggests that insiders own a significant stake in Mercury Fintech Holding. The company has a market capitalization of just US$106m, and insiders have US$29m worth of shares in their own names. While this shows alignment with shareholders, it’s worth noting that the company is still very small. Some insiders may have founded this business. You can click here to see if insiders have been buying or selling.
Public ownership
The general public, including retail investors, own 39% of the company’s shares, so they can’t be easily ignored. While this group doesn’t necessarily call the shots, it can certainly have a big influence on how the company is run.
Private company ownership
Our data shows that Private companies own 9.9% of the company’s shares. It might be worth looking into this further. If insiders or other parties have an interest in these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. For that purpose, 3 warning signs We discovered Mercurity Fintech Holding (including two slightly unpleasant ones).
of course, You may find a great investment if you look elsewhere. So take a look at this free List of interesting companies.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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