This is what the shareholding structure of MSA Safety Incorporated (NYSE: MSA) looks like
If you want to know who actually controls MSA Safety Incorporated (NYSE: MSA), then you will need to examine the makeup of its share register. Insiders often own a large portion of younger and smaller firms, while larger firms tend to have institutions as shareholders. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is led by skilled, owner-oriented people.” So it’s nice to see some insider ownership as it can suggest that the management is owner-driven.
With a market cap of US $ 5.6 billion, MSA Safety is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. In the graph below, we can see that institutional investors have bought into the company. We can zoom in on the different property groups to learn more about MSA Safety.
Check out our latest review for MSA Safety
What does institutional ownership tell us about the security of MSA?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
MSA Safety already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out MSA Safety’s earnings history below. Of course, the future is what really matters.
Institutional investors own more than 50% of the company, so together they can probably strongly influence the decisions of the board. MSA Safety is not owned by hedge funds. Stichting Pensioenfonds ABP is currently the largest shareholder of the company with 11% of the shares outstanding. The Vanguard Group, Inc. is the second largest shareholder holding 9.1% of the common shares, and BlackRock, Inc. owns approximately 7.6% of the shares of the company.
Upon closer inspection, we found that more than half of the company’s shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
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. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider Property of MSA Safety
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
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.
We can report that insiders own shares of MSA Safety Incorporated. Insiders have a significant stake worth $ 365 million. Most would see this as a real benefit. If you would like to explore the issue of Insider Alignment, you can click here to see if any Insiders have bought or sold.
General public property
With a 14% stake, the general public, made up mainly of individual investors, has some influence over MSA Safety. This size of ownership, while considerable, may not be enough to change company policy if the decision is not aligned with other large shareholders.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider, for example, the ever-present specter of investment risk. We have identified 3 warning signs with MSA Safety and understanding them should be part of your investment process.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
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 any stock 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 material. Simply Wall St has no position in any of the stocks mentioned.