Key Insights

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

• 53% of the business is held by the top 10 shareholders

• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in SigmaRoc plc (LON:SRC) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

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 take a closer look to see what the different types of shareholders can tell us about SigmaRoc.

See our latest analysis for SigmaRoc

What Does The Institutional Ownership Tell Us About SigmaRoc?

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.

We can see that SigmaRoc 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 SigmaRoc, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in SigmaRoc. Looking at our data, we can see that the largest shareholder is CRH plc with 15% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 7.7% of common stock, and Rettig Group Oy Ab holds about 4.5% of the company stock.

We did some more digging and found that 10 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.