MS INTERNATIONAL plc (LON:MSI) Top Key Executive Michael Bell, the company's largest shareholder sees 13%reduction in holdings value
Key Insights
- MS INTERNATIONAL's significant insider ownership suggests inherent interests in company's expansion
- 51% of the business is held by the top 6 shareholders
- 26% of MS INTERNATIONAL is held by Institutions
If you want to know who really controls MS INTERNATIONAL plc (LON:MSI), 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 37% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, insiders as a group endured the highest losses after market cap fell by UK£30m.
Let's take a closer look to see what the different types of shareholders can tell us about MS INTERNATIONAL.
View our latest analysis for MS INTERNATIONAL
What Does The Institutional Ownership Tell Us About MS INTERNATIONAL?
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.
MS INTERNATIONAL already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 MS INTERNATIONAL's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in MS INTERNATIONAL. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In MS INTERNATIONAL's case, its Top Key Executive, Michael Bell, is the largest shareholder, holding 18% of shares outstanding. With 11% and 6.5% of the shares outstanding respectively, David Pyle and Michael Patrick O'Connell are the second and third largest shareholders. Interestingly, the third-largest shareholder, Michael Patrick O'Connell is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of MS INTERNATIONAL
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own a reasonable proportion of MS INTERNATIONAL plc. It has a market capitalization of just UK£207m, and insiders have UK£77m worth of shares in their own names. 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
The general public, who are usually individual investors, hold a 36% stake in MS INTERNATIONAL. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with MS INTERNATIONAL , and understanding them should be part of your investment process.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.