What does the ownership structure of Marshalls plc (LON:MSLH) look like?

If you want to know who really controls Marshalls plc (LON:MSLH), then you’ll have to look at the composition of its share registry. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of £1.2 billion, Marshalls is a decent size, so it’s probably on the radar of institutional investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about Marshalls.

Check out our latest analysis for Marshalls

distribution of property

What does institutional ownership tell us about Marshalls?

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.

We can see that Marshalls has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is better 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 Marshalls’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

earnings-and-revenue-growth

Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Hedge funds don’t have a lot of shares in Marshalls. The company’s largest shareholder is abrdn plc, with a 13% stake. Meanwhile, the second and third largest shareholders hold 5.0% and 4.1% of the outstanding shares respectively.

A closer look at our ownership figures suggests that the top 14 shareholders hold a combined ownership of 50%, implying that no single shareholder has a majority.

Institutional ownership research is a good way to assess and filter a stock’s expected performance. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.

Marshalls 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.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders hold less than 1% of Marshalls plc in their own name. This is a fairly large company, so it would be possible for board members to hold a significant stake in the company, without holding much proportional interest. In this case, they hold around £2.9 million worth of shares (at current prices). Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have bought or sold.

General public property

The general public, who are usually individual investors, hold a 24% stake in Marshalls. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. To this end, you should be aware of the 2 warning signs we spotted with Marshalls .

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

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.

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