If you want to know who actually controls Matthews International Corporation (NASDAQ: MATW), you’ll need to look at the composition of its stock register. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. Companies that have been privatized tend to have low insider ownership.
Matthews International isn’t huge, but it’s not particularly small either. It has a market capitalization of US$941 million, which means it generally expects to see certain institutions listed on the stock register. Looking at our ownership group data (below), it appears that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Matthews International.
Check out our latest analysis for Matthews International
What does institutional ownership tell us about Matthews International?
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 a sizeable portion of Matthews International. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Matthews International’s earnings history below. Of course, the future is what really matters.
Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. Hedge funds don’t have a lot of stock in Matthews International. BlackRock, Inc. is currently the largest shareholder, with 17% of shares outstanding. Meanwhile, the second and third largest shareholders hold 11% and 5.1% of the outstanding shares respectively. Additionally, the company’s CEO, Joseph Bartolacci, directly owns 1.0% of the total shares outstanding.
We dug a little deeper and found that 8 of the major shareholders make up about 51% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thus balancing everyone’s interests somewhat.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.
Matthews International Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Shareholders would likely be interested to learn that insiders hold stock in Matthews International Corporation. It has a market capitalization of just $941 million and insiders hold $34 million worth of shares, in their own name. It’s good to see insider investing, but it might be worth checking to see if those insiders have been buying.
General public property
With a 15% stake, the general public, consisting primarily of individual investors, has some influence over Matthews International. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
It is always useful to think about the different groups that own shares in a company. But to better understand Matthews International, we need to consider many other factors. Like risks, for example. Every business has them, and we’ve spotted 2 warning signs for Matthews International (1 of which can’t be ignored!) that you should know about.
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.