With 89% ownership of the shares, Mastercard Incorporated (NYSE:MA) is heavily dominated by institutional owners
In This Article:
Key Insights
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Significantly high institutional ownership implies Mastercard's stock price is sensitive to their trading actions
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50% of the business is held by the top 17 shareholders
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Mastercard Incorporated (NYSE:MA), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 89% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's delve deeper into each type of owner of Mastercard, beginning with the chart below.
Check out our latest analysis for Mastercard
What Does The Institutional Ownership Tell Us About Mastercard?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Mastercard does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Mastercard, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Mastercard. The MasterCard Foundation, Endowment Arm is currently the largest shareholder, with 10.0% of shares outstanding. With 8.4% and 7.5% of the shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.
After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.