In This Article:
Key Insights
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Given the large stake in the stock by institutions, Sturm Ruger's stock price might be vulnerable to their trading decisions
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The top 15 shareholders own 50% of the company
If you want to know who really controls Sturm, Ruger & Company, Inc. (NYSE:RGR), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 69% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about Sturm Ruger.
See our latest analysis for Sturm Ruger
What Does The Institutional Ownership Tell Us About Sturm Ruger?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Sturm Ruger. 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 Sturm Ruger, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Sturm Ruger is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 4.9% of the stock. In addition, we found that Christopher Killoy, the CEO has 0.7% of the shares allocated to their name.
After doing some more digging, we found that the top 15 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
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 some analyst coverage of the stock, but it could still become more well known, with time.