Individual investors own 33% of ArcelorMittal S.A. (AMS:MT) shares but private companies control 43% of the company

In This Article:

Key Insights

  • Significant control over ArcelorMittal by private companies implies that the general public has more power to influence management and governance-related decisions

  • The top 3 shareholders own 51% of the company

  • Institutional ownership in ArcelorMittal is 24%

To get a sense of who is truly in control of ArcelorMittal S.A. (AMS:MT), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 43% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, individual investors make up 33% of the company’s shareholders.

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

See our latest analysis for ArcelorMittal

ownership-breakdown
ENXTAM:MT Ownership Breakdown January 13th 2025

What Does The Institutional Ownership Tell Us About ArcelorMittal?

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.

As you can see, institutional investors have a fair amount of stake in ArcelorMittal. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see ArcelorMittal's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
ENXTAM:MT Earnings and Revenue Growth January 13th 2025

We note that hedge funds don't have a meaningful investment in ArcelorMittal. Our data shows that Grandel Limited is the largest shareholder with 43% of shares outstanding. For context, the second largest shareholder holds about 5.4% of the shares outstanding, followed by an ownership of 2.4% by the third-largest shareholder.

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 it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.