Key Insights

• The considerable ownership by retail investors in Odyssey Marine Exploration indicates that they collectively have a greater say in management and business strategy
• A total of 25 investors have a majority stake in the company with 47% ownership
• Institutional ownership in Odyssey Marine Exploration is 24%

A look at the shareholders of Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 24% increase in the stock price last week, retail investors profited the most, but institutions who own 24% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Odyssey Marine Exploration.

See our latest analysis for Odyssey Marine Exploration

What Does The Institutional Ownership Tell Us About Odyssey Marine Exploration?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

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

Our data indicates that hedge funds own 20% of Odyssey Marine Exploration. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is FourWorld Capital Management LLC, with ownership of 15%. With 5.6% and 4.8% of the shares outstanding respectively, Two Seas Capital LP and Greywolf Capital Management LP are the second and third largest shareholders. Furthermore, CEO Mark Gordon is the owner of 1.3% of the company's shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Odyssey Marine Exploration

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Odyssey Marine Exploration, Inc.. As individuals, the insiders collectively own US$4.6m worth of the US$105m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- including retail investors -- own 51% of Odyssey Marine Exploration. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Odyssey Marine Exploration is showing 4 warning signs in our investment analysis , and 2 of those shouldn't be ignored...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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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.