In spite of recent selling, insiders still control 65% of Maui Land & Pineapple Company, Inc. (NYSE:MLP)
Key Insights
Maui Land & Pineapple Company's significant insider ownership suggests inherent interests in company's expansion
The largest shareholder of the company is Stephen Case with a 61% stake
If you want to know who really controls Maui Land & Pineapple Company, Inc. (NYSE:MLP), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 65% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Despite recent sales, insiders own the most shares in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Maui Land & Pineapple Company.
Check out our latest analysis for Maui Land & Pineapple Company
What Does The Institutional Ownership Tell Us About Maui Land & Pineapple Company?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Maui Land & Pineapple Company already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Maui Land & Pineapple Company's historic earnings and revenue below, but keep in mind there's always more to the story.
Maui Land & Pineapple Company is not owned by hedge funds. The company's largest shareholder is Stephen Case, with ownership of 61%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 6.4% of the shares outstanding, followed by an ownership of 3.3% by the third-largest shareholder.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Maui Land & Pineapple Company
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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems that insiders own more than half the Maui Land & Pineapple Company, Inc. stock. This gives them a lot of power. So they have a US$189m stake in this US$290m business. 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, who are usually individual investors, hold a 16% stake in Maui Land & Pineapple Company. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Maui Land & Pineapple Company better, we need to consider many other factors. For example, we've discovered 1 warning sign for Maui Land & Pineapple Company that you should be aware of before investing here.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
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