Is Global Ship Lease, Inc.'s (NYSE:GSL) Shareholder Ownership Skewed Towards Insiders?

Published
July 05, 2022
NYSE:GSL
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The big shareholder groups in Global Ship Lease, Inc. (NYSE:GSL) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of 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.

Global Ship Lease is a smaller company with a market capitalization of US$599m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Global Ship Lease.

View our latest analysis for Global Ship Lease

ownership-breakdown
NYSE:GSL Ownership Breakdown July 5th 2022

What Does The Institutional Ownership Tell Us About Global Ship Lease?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Global Ship Lease does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Global Ship Lease's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:GSL Earnings and Revenue Growth July 5th 2022

We note that hedge funds don't have a meaningful investment in Global Ship Lease. Merit Corporation is currently the largest shareholder, with 8.3% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.1% and 5.3% of the stock. Georgios Youroukos, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Ian Webber directly holds 0.5% of the total shares outstanding.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Global Ship Lease

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.

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 most recent data indicates that insiders own some shares in Global Ship Lease, Inc.. In their own names, insiders own US$44m worth of stock in the US$599m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Global Ship Lease. 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

It seems that Private Companies own 8.3%, of the Global Ship Lease stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Global Ship Lease has 4 warning signs (and 1 which is potentially serious) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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