key insights
To understand who really controls Worthington Enterprises, Inc. (NYSE:WOR), it’s important to understand the business’ ownership structure. The group that owns the largest number of shares in the company (about 52% to be exact) is institutional investors. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Institutional investors suffered the biggest losses as the company’s market capitalization fell by US$73 million last week. However, the 7.7% return to shareholders for the year may have softened the blow. But we guess they will pay attention to nerfs in the future.
Let’s take a closer look to see what the different types of shareholders can tell us about Worthington Enterprises.
Check out our latest analysis for Worthington Enterprises.
Ownership breakdown
What does institutional ownership tell us about Worthington Enterprises?
Institutions typically measure a stock against a benchmark when reporting to their own investors, so enthusiasm for a stock often increases once it’s included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.
We can see that Worthington Enterprises does have institutional investors. And they own a significant portion of the company’s stock. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Worthington Enterprises’ historic earnings and revenue below, but keep in mind there’s always more to the story.
Profit and revenue growth
Institutional investors own more than half of the outstanding shares, so the board will need to pay attention to their preferences. Note that hedge funds don’t have a meaningful investment in Worthington Enterprises. Looking at our data, we can see that the largest shareholder is John McConnell with 34% of shares outstanding. With 9.8% and 7.4% of the shares outstanding, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders, respectively. Furthermore, the company’s CEO B. Rose directly holds 0.8% of the total outstanding shares.
To make our study more interesting, we found that the top 3 shareholders have majority ownership in the company. This means they have enough power to influence company decisions.
While researching 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 quite a few analysts covering this stock, so it might be useful to know their aggregate forecast for the future.
Insider ownership in Worthington Enterprises
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. The answers of company management to the board of directors and the latter must represent the interests of shareholders. In particular, top-level managers may serve on the board themselves.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to be held accountable for board decisions.
Our most recent data indicates that insiders own a significant percentage of Worthington Enterprises. The company has a market capitalization of just US$2b, and insiders have US$765m worth of shares in their own names. That’s very important. Most people would be happy to see the board investing alongside them. You may want to access this free chart of recent insider transactions.
Open to the public
With an ownership interest of 11%, the general public, primarily retail investors, has some influence over Worthington Enterprises. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We’ve discovered 3 warning signs for Worthington Enterprises you should be aware of.
After all, the future is what matters most. Access this free report on analyst forecasts for the company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
