Key Takeaways:
- 21 US stocks are forecast to pay a dividend yield of over 6% next year
- Retail investors hold around 60% of Melco Resorts & Entertainment Limited (NASDAQ:MLCO) shares, giving them significant upside potential or downside risk
- Institutions hold 33% of the company’s shares, indicating credibility amongst professional investors
- No single individual has a majority interest in Melco Resorts & Entertainment, with the top 25 shareholders collectively owning less than 50% of the share register
- The company’s ownership structure and analyst sentiments can provide valuable insights for investors
Introduction to Ownership Structure
The ownership structure of a company can provide valuable insights for investors, as it can indicate the level of control and influence that different groups have over the company. In the case of Melco Resorts & Entertainment Limited (NASDAQ:MLCO), the company’s ownership structure is characterized by a significant stake held by retail investors, who own around 60% of the company’s shares. This gives them considerable upside potential or downside risk, as they are the largest group of shareholders. On the other hand, institutions hold around 33% of the company’s shares, which indicates that Melco Resorts & Entertainment has some credibility amongst professional investors.
Institutional Ownership and Credibility
Institutional investors, such as pension funds and mutual funds, typically invest in larger, more established companies that are included in benchmark indices. The fact that Melco Resorts & Entertainment has a significant institutional ownership stake suggests that it has some level of credibility amongst professional investors. However, it is worth noting that institutions can make bad investments, just like individual investors, and a big share price drop can occur if two large institutional investors try to sell out of a stock at the same time. Therefore, it is essential to consider other factors, such as the company’s earnings trajectory, when evaluating its investment potential.
Hedge Funds and Insider Ownership
Hedge funds do not have a significant stake in Melco Resorts & Entertainment, and the company’s largest shareholder is Melco International Development Limited, which owns 7.1% of the company’s shares. The second and third largest shareholders hold 6.4% and 2.7% of the shares outstanding, respectively. The company’s insider ownership structure is also worth noting, as it can indicate the level of alignment between the company’s management and its shareholders. However, the data on insider ownership is not comprehensive, and it is unclear whether board members hold shares personally.
Public Ownership and Company Performance
The general public, who are usually individual investors, hold a substantial 60% stake in Melco Resorts & Entertainment, making it a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions, such as board composition, executive compensation, and the dividend payout ratio. It is also worth noting that public companies own 7.1% of Melco Resorts & Entertainment, which may be a strategic stake. To understand the company’s performance, it is essential to consider various factors, including its earnings trajectory, analyst forecasts, and industry trends.
Conclusion and Final Thoughts
In conclusion, the ownership structure of Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is characterized by a significant stake held by retail investors, institutions, and public companies. While the company’s institutional ownership stake indicates some level of credibility amongst professional investors, it is essential to consider other factors, such as the company’s earnings trajectory and analyst forecasts, when evaluating its investment potential. The company’s insider ownership structure and public ownership stake are also worth noting, as they can indicate the level of alignment between the company’s management and its shareholders, as well as the level of influence that different groups have over the company. By considering these factors, investors can make more informed decisions about their investments in Melco Resorts & Entertainment.
