In This Article:
Key Insights
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Institutions' substantial holdings in Filtronic implies that they have significant influence over the company's share price
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A total of 7 investors have a majority stake in the company with 53% ownership
Every investor in Filtronic plc (LON:FTC) should be aware of the most powerful shareholder groups. With 47% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of Filtronic.
See our latest analysis for Filtronic
What Does The Institutional Ownership Tell Us About Filtronic?
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 Filtronic does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Filtronic, (below). Of course, keep in mind that there are other factors to consider, too.
Filtronic is not owned by hedge funds. The company's largest shareholder is Canaccord Genuity Asset Management Limited, with ownership of 14%. For context, the second largest shareholder holds about 14% of the shares outstanding, followed by an ownership of 5.7% by the third-largest shareholder.
On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.