With a 78% stake, Matrix Service Company (NASDAQ: MTRX) has strong institutional support

If you want to know who actually controls Matrix Service Company (NASDAQ:MTRX), then you’ll need to look at the composition of its share register. The group with the largest number of shares in the company, around 78% to be precise, are institutions. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

Since institutions have access to huge amounts of capital, their movements in the market tend to come under scrutiny from retail or individual investors. Therefore, a large amount of institutional money invested in a company is generally considered a positive attribute.

Let’s take a closer look at what different types of shareholders can tell us about Matrix Service.

NasdaqGS: MTRX Ownership Breakdown August 19, 2022

What does institutional ownership tell us about Matrix Service?

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.

Matrix Service already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Matrix Service’s revenue history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS: MTRX Earnings and Revenue Growth August 19, 2022

Since institutional investors own more than half of the issued shares, the board will likely have to pay attention to their preferences. Our data shows that hedge funds own 5.9% of Matrix Service. This is worth noting, as hedge funds are often quite active investors, who may try to influence management. Many want value creation (and a rise in share price) in the short to medium term. Harvey Partners, LLC is currently the largest shareholder, with 5.9% of the shares outstanding. Dimensional Fund Advisors LP is the second largest shareholder with 5.8% of the common stock and BNY Mellon Asset Management owns approximately 4.9% of the company’s stock. Additionally, the company’s CEO, John Hewitt, directly owns 1.1% of the total shares outstanding.

After digging a little deeper, we found that the top 13 held combined ownership of 52% of the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Matrix Service Insider Ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders hold shares of Matrix Service Company. In their own name, insiders hold $4.7 million worth of stock in the $149 million company. Some would say this shows the alignment of interests between shareholders and the board, although we generally prefer to see larger insider participations. But it might be worth checking to see if these insiders have sold.

General public property

The general public, including retail investors, owns 13% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information.

I like to dive deeper on the performance of a company in the past. You can find Earnings and Earnings History in this detailed graph.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.