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Great week for Genco Shipping & Trading Limited (NYSE:GNK) institutional investors after losing 24% over the previous year

Key Insights

  • Institutions' substantial holdings in Genco Shipping & Trading implies that they have significant influence over the company's share price

  • A total of 25 investors have a majority stake in the company with 45% ownership

  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Genco Shipping & Trading Limited (NYSE:GNK), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would appreciate the 10% increase in share prices last week, given their one-year returns have been disappointing at 24%.

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Let's delve deeper into each type of owner of Genco Shipping & Trading, beginning with the chart below.

View our latest analysis for Genco Shipping & Trading

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Genco Shipping & Trading?

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 Genco Shipping & Trading does have institutional investors; and they hold a good portion of the company's stock. 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 Genco Shipping & Trading's historic earnings and revenue below, but keep in mind there's always more to the story.

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

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Genco Shipping & Trading is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 7.2% of shares outstanding. With 6.4% and 3.3% of the shares outstanding respectively, Dimensional Fund Advisors LP and State Street Global Advisors, Inc. are the second and third largest shareholders. Additionally, the company's CEO John Wobensmith directly holds 1.0% of the total shares outstanding.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Genco Shipping & Trading

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.

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.

Our most recent data indicates that insiders own some shares in Genco Shipping & Trading Limited. In their own names, insiders own US$9.5m worth of stock in the US$692m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Genco Shipping & Trading. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Genco Shipping & Trading better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Genco Shipping & Trading you should be aware of.

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.

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