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JBT Marel Corporation's (NYSE:JBTM) institutional investors lost 4.6% last week but have benefitted from longer-term gains
Institutions' substantial holdings in JBT Marel implies that they have significant influence over the company's share price
A total of 17 investors have a majority stake in the company with 50% ownership
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls JBT Marel Corporation (NYSE:JBTM), then you'll have to look at the makeup of its share registry. With 69% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 4.6% in value last week. However, the 30% one-year returns may have helped alleviate their overall losses. They should, however, be mindful of further losses in the future.
In the chart below, we zoom in on the different ownership groups of JBT Marel.
What Does The Institutional Ownership Tell Us About JBT Marel?
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.
JBT Marel 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. 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 JBT Marel's historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:JBTM Earnings and Revenue Growth January 13th 2025
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. JBT Marel is not owned by hedge funds. Our data shows that BlackRock, Inc. is the largest shareholder with 9.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.7% and 6.6% of the stock.
A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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 JBT Marel
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that JBT Marel Corporation insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own US$61m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. 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 Equity Ownership
With a stake of 6.6%, private equity firms could influence the JBT Marel board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand JBT Marel better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for JBT Marel you should know about.
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.
