Every investor in Matthews International Corporation (NASDAQ: MATW) should know the most powerful shareholder groups. 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$1.1 billion, which means it generally expects to see certain institutions listed on the stock register. Our analysis of company ownership, below, shows that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Matthews International.
See our latest analysis for Matthews International
What does institutional ownership tell us about Matthews International?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Matthews International already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be 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. Matthews International is not owned by hedge funds. BlackRock, Inc. is currently the largest shareholder, with 17% of shares outstanding. Meanwhile, the second and third largest shareholders hold 11% and 4.9% 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 50% 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 might be useful to know their overall view on the future.
Matthews International Insider Ownership
The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders hold shares of Matthews International Corporation. Insiders have a significant stake worth US$38 million. Most would see this as a real positive. If you want to explore the issue of insider alignment, you can click here to see if insiders have been buying or selling.
General public property
With a 13% stake, the general public has some influence over Matthews International. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
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. Know that Matthews International shows 3 warning signs in our investment analysis you should know…
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
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.
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