Marine Products Corporation ownership dominated by private companies and insiders

investing.com:

Marine Products Corporation (NYSE: NYSE:MPX) has recently disclosed its ownership structure, revealing a substantial majority held by private entities, including a dominant 56% stake by LOR, Inc. The private companies collectively possess 58% of the firm, granting them significant sway over its strategic decisions. This concentration of control comes to light as the company's shareholders received an update today.

Institutional investors have a notable presence with a 19% shareholding. This investment level often signals confidence in the company's future performance, as institutions typically align their interests with stocks that are part of major indices or have promising growth trajectories. However, the company is not without its risks. One such concern is the 'crowded trade' phenomenon, where numerous investors may simultaneously sell their shares during market downturns, potentially exacerbating stock price declines.

Interestingly, Marine Products is not a target for hedge funds, which are often known for aggressive investment strategies. The absence of hedge fund ownership could imply a different risk profile for the company.

The second and third largest shareholders hold smaller but still significant stakes at 4.4% and 3.7%, respectively. Notably, board member Gary Rollins (NYSE:ROL) is the third-largest shareholder, which suggests an alignment of interests between management and shareholders. CEO Ben Palmer also has skin in the game with direct ownership of 1.3% of the company's shares.

Retail investors account for a 13% stake in Marine Products. While they do not have direct decision-making power, their collective actions can still influence the direction of the company.

The insider ownership includes US$31