Australia markets closed
  • ALL ORDS

    7,413.10
    +73.80 (+1.01%)
     
  • ASX 200

    7,182.70
    +76.80 (+1.08%)
     
  • AUD/USD

    0.7163
    +0.0064 (+0.90%)
     
  • OIL

    115.07
    +0.98 (+0.86%)
     
  • GOLD

    1,857.30
    +3.40 (+0.18%)
     
  • BTC-AUD

    40,568.71
    -433.46 (-1.06%)
     
  • CMC Crypto 200

    625.79
    -3.71 (-0.59%)
     
  • AUD/EUR

    0.6670
    +0.0059 (+0.89%)
     
  • AUD/NZD

    1.0951
    +0.0003 (+0.03%)
     
  • NZX 50

    11,065.15
    -37.69 (-0.34%)
     
  • NASDAQ

    12,681.42
    +404.63 (+3.30%)
     
  • FTSE

    7,585.46
    +20.54 (+0.27%)
     
  • Dow Jones

    33,212.96
    +575.77 (+1.76%)
     
  • DAX

    14,462.19
    +230.90 (+1.62%)
     
  • Hang Seng

    20,697.36
    +581.16 (+2.89%)
     
  • NIKKEI 225

    26,781.68
    +176.84 (+0.66%)
     

What Kind Of Shareholders Hold The Majority In MGM Resorts International's (NYSE:MGM) Shares?

  • Oops!
    Something went wrong.
    Please try again later.
·4-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

The big shareholder groups in MGM Resorts International (NYSE:MGM) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$21b, MGM Resorts International is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about MGM Resorts International.

Check out our latest analysis for MGM Resorts International

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About MGM Resorts International?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that MGM Resorts International 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. 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 MGM Resorts International, (below). Of course, keep in mind that there are other factors to consider, too.

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

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in MGM Resorts International. Looking at our data, we can see that the largest shareholder is IAC/InterActiveCorp with 13% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.1% and 5.6% of the stock.

We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of MGM Resorts International

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

We can see that insiders own shares in MGM Resorts International. The insiders have a meaningful stake worth US$599m. we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over MGM Resorts International. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 4.5%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 13% of the MGM Resorts International shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 4 warning signs we've spotted with MGM Resorts International (including 2 which are a bit unpleasant) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting