Marine Products Corporation (NYSE:MPX) most popular amongst private companies who own 58% of the shares, institutions hold 19%
In This Article:
Key Insights
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Significant control over Marine Products by private companies implies that the general public has more power to influence management and governance-related decisions
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55% of the company is held by a single shareholder (LOR, Inc.)
If you want to know who really controls Marine Products Corporation (NYSE:MPX), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 58% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 19% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's take a closer look to see what the different types of shareholders can tell us about Marine Products.
See our latest analysis for Marine Products
What Does The Institutional Ownership Tell Us About Marine Products?
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.
As you can see, institutional investors have a fair amount of stake in Marine Products. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Marine Products' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Marine Products. LOR, Inc. is currently the company's largest shareholder with 55% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 4.4% of the shares outstanding, followed by an ownership of 3.7% by the third-largest shareholder. Gary Rollins, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Ben Palmer, the CEO has 1.4% of the shares allocated to their name.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.