MS INTERNATIONAL plc (LON:MSI) insiders have had a fantastic week as stock increased 10%, and they haven't stopped buying

Key Insights

• Insiders appear to have a vested interest in MS INTERNATIONAL's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 56% ownership
• Recent purchases by insiders

To get a sense of who is truly in control of MS INTERNATIONAL plc (LON:MSI), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Our data shows that insiders recently bought shares in the company and they were rewarded after market cap rose UK£8.5m last week.

Let's take a closer look to see what the different types of shareholders can tell us about MS INTERNATIONAL.

See our latest analysis for MS INTERNATIONAL

What Does The Institutional Ownership Tell Us About MS INTERNATIONAL?

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.

MS INTERNATIONAL 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. 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 MS INTERNATIONAL, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in MS INTERNATIONAL. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In MS INTERNATIONAL's case, its Top Key Executive, Michael Bell, is the largest shareholder, holding 32% of shares outstanding. Fleming Family & Partners Ltd. is the second largest shareholder owning 13% of common stock, and David Pyle holds about 11% of the company stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of MS INTERNATIONAL

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of MS INTERNATIONAL plc. This gives them effective control of the company. Given it has a market cap of UK£92m, that means they have UK£50m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 15% stake in MS INTERNATIONAL. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 5.2%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. For example, we've discovered 2 warning signs for MS INTERNATIONAL 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.