Key Insights

• Significantly high institutional ownership implies Mpac Group's stock price is sensitive to their trading actions

• The top 12 shareholders own 52% of the company

• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Mpac Group plc (LON:MPAC) can tell us which group is most powerful. With 63% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

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

Check out our latest analysis for Mpac Group

What Does The Institutional Ownership Tell Us About Mpac Group?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Mpac Group. 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 Mpac Group, (below). Of course, keep in mind that there are other factors to consider, too.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Mpac Group is not owned by hedge funds. The company's largest shareholder is Schroder Investment Management Limited, with ownership of 17%. Meanwhile, the second and third largest shareholders, hold 5.3% and 5.2%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 12 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.

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.