A look at the shareholders of Ferroglobe PLC (NASDAQ: GSM) can tell us which group is more powerful. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.
The ferroglobe isn’t huge, but it’s not particularly small either. He has a market cap of US $ 1.1 billion, which means he generally expects to see certain institutions listed on the stock register. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Ferroglobe.
See our latest review for Ferroglobe
What does institutional ownership tell us about Ferroglobe?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Ferroglobe has institutional investors; and they own a good portion of the company’s shares. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Ferroglobe’s past income trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Our data indicates that hedge funds own 5.3% of Ferroglobe. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Grupo Villar Mir, SAU is currently the largest shareholder, with 49% of the shares outstanding. Rubric Capital Management LP is the second largest shareholder holding 5.3% of the common shares, and Barrow, Hanley, Mewhinney & Strauss, Inc. owns approximately 2.1% of the shares of the company.
After digging a little deeper, we found that the top 2 shareholders collectively control over half of the company’s stock, implying that they have considerable power to influence company decisions.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Ferroglobe insider property
The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of Ferroglobe PLC. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. It is a fairly large company, so it would be possible for the board members to have a significant interest in the company, without owning much of a proportional interest. In this case, they own approximately US $ 669,000 of shares (at current prices). It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
With a 19% stake, the general public, made up mainly of individual investors, has some influence over Ferroglobe. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
It appears that private companies own 49% of Ferroglobe’s shares. It might be worth pursuing the matter further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Ferroglobe, there are many other factors that we need to take into account. To this end, you should inquire about the 3 warning signs we spotted with Ferroglobe (including 1 that should not be overlooked).
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.