A Look at Shareholders and Ownership
Marvell Technology, Inc (NASDAQ:MRVL) has caught the attention of many investors due to its high institutional ownership. This means that the company’s stock price is sensitive to the trading actions of these institutional investors. In fact, the top 12 shareholders own 50% of the company, indicating that they have the most influence over its performance.
Institutional Ownership
Institutional investors, such as hedge funds and mutual funds, have a significant amount of resources and liquidity at their disposal. As such, their investing decisions carry a lot of weight in the market. This is why having a considerable amount of institutional money invested in a company is often seen as a desirable trait. In the case of Marvell Technology, around 84% of the company’s shares are owned by institutions. This indicates that the company has a certain level of credibility in the investment community.
It’s important to note that institutional investors can also get it wrong sometimes. For example, if two large institutional investors try to sell out of a stock at the same time, it can lead to a significant drop in the share price.
Earnings and Revenue Growth
In addition to institutional ownership, investors should also pay attention to the company’s earnings and revenue growth. Marvell Technology has seen impressive results through strategic initiatives, which has led to strong earnings and revenue growth.
Insider Ownership
Insider ownership refers to the percentage of a company’s shares that are owned by its executives and board members. While it’s generally considered a good thing, it can also make it difficult for other shareholders to hold the board accountable for their decisions. In the case of Marvell Technology, insiders own under 1% of the company, which is relatively low. It’s worth noting that they still hold a significant amount of shares, worth US$296m. This shows that they have a vested interest in the company’s success.
General Public Ownership
The public holds a 16% stake in Marvell Technology. While this may not be enough to sway policy decisions, it still has the potential to make a collective impact on the company’s policies.
Marvell Technology’s high institutional ownership, strong earnings and revenue growth, and insider ownership.
