Owning 60% in MHP SE (LON:MHPC) means that insiders are heavily invested in the company's future

In This Article:

Key Insights

  • Significant insider control over MHP implies vested interests in company growth

  • The largest shareholder of the company is Yuriy Kosyuk with a 60% stake

  • Institutional ownership in MHP is 14%

If you want to know who really controls MHP SE (LON:MHPC), 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 60% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So, insiders of MHP have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's delve deeper into each type of owner of MHP, beginning with the chart below.

View our latest analysis for MHP

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LSE:MHPC Ownership Breakdown February 23rd 2024

What Does The Institutional Ownership Tell Us About MHP?

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.

MHP already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 MHP's historic earnings and revenue below, but keep in mind there's always more to the story.

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LSE:MHPC Earnings and Revenue Growth February 23rd 2024

We note that hedge funds don't have a meaningful investment in MHP. The company's CEO Yuriy Kosyuk is the largest shareholder with 60% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. Meanwhile, the second and third largest shareholders, hold 6.2% and 3.1%, of the shares outstanding, respectively.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of MHP

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.