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How Much Of Mission Produce, Inc. (NASDAQ:AVO) Do Insiders Own?

·4 min read
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If you want to know who really controls Mission Produce, Inc. (NASDAQ:AVO), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.  

 Mission Produce isn't enormous, but it's not particularly small either. It has a market capitalization of US$1.6b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Mission Produce. 

Check out our latest analysis for Mission Produce

What Does The Institutional Ownership Tell Us About Mission Produce?

 Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. 

 We can see that Mission Produce does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Mission Produce, (below). Of course, keep in mind that there are other factors to consider, too. 

 Hedge funds don't have many shares in Mission Produce. Our data shows that Luis Gonzalez is the largest shareholder with 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 7.3% of the stock. Stephen Barnard, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.      

 After doing some more digging, we found that the top 12 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.  

 While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.  

Insider Ownership Of Mission Produce

 The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. 

 Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. 

 Our information suggests that insiders maintain a significant holding in Mission Produce, Inc.. It has a market capitalization of just US$1.6b, and insiders have US$696m worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.  

General Public Ownership

 The general public holds a 43% stake in Mission Produce. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. 

Next Steps:

 I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Mission Produce you should be aware of.    

 But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.