What type of shareholders make up the share register of Mayville Engineering Company, Inc. (NYSE:MEC)?
Every investor in Mayville Engineering Company, Inc. (NYSE: MEC) should know the most powerful shareholder groups. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Companies that were previously publicly owned tend to have less insider ownership.
Mayville Engineering Company is a small company with a market capitalization of US$144 million, so it may still fly under the radar of many institutional investors. In the graph below, we can see that the institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Mayville Engineering Company.
Check out our latest analysis for Mayville Engineering Company
What does institutional ownership tell us about Mayville Engineering Company?
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.
Mayville Engineering Company already has institutions listed on the stock register. Indeed, they hold a respectable stake in the company. 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. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Mayville Engineering Company’s historic profits and revenues below, but keep in mind there’s always more to tell.
Hedge funds don’t have a lot of stock in Mayville Engineering Company. Our data shows that Mayville Engineering Company, Inc. Esop is the largest shareholder with 35% of the shares outstanding. In comparison, the second and third shareholders hold around 12% and 12% of the shares. Additionally, CEO Robert Kamphuis owns 2.4% of the company’s shares.
After digging a little deeper, we found that the top 3 shareholders collectively control more than half of the company’s stock, implying that they have considerable power to influence company decisions.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.
Insider ownership of Mayville Engineering Company
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.
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.
We may report that insiders own shares of Mayville Engineering Company, Inc. As individuals, insiders collectively own US$7.2 million of the US$144 million company. It’s good to see insider investing, but we generally like to see higher insider holdings. It might be worth checking to see if these insiders have bought.
General public property
With an 11% stake, the general public, consisting primarily of individual investors, has some influence over Mayville Engineering Company. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Consider the risks, for example. Every business has them, and we’ve spotted 1 warning sign for Mayville Engineering Company you should know.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its 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.
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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.