MDU Resources Group, Inc. (NYSE:MDU) is favoured by institutional owners who hold 75% of the company

In This Article:

Key Insights

  • Institutions' substantial holdings in MDU Resources Group 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 MDU Resources Group, Inc. (NYSE:MDU), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 75% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

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.

In the chart below, we zoom in on the different ownership groups of MDU Resources Group.

Check out our latest analysis for MDU Resources Group

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About MDU Resources Group?

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 MDU Resources Group does have institutional investors; and they hold a good portion of the company's stock. 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. 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 MDU Resources Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in MDU Resources Group. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 10% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.1% and 5.0%, of the shares outstanding, respectively.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 shareholders, meaning that no single shareholder has a majority interest in the ownership.