In This Article:
Key Insights
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Given the large stake in the stock by institutions, Nabors Industries' stock price might be vulnerable to their trading decisions
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The top 10 shareholders own 51% of the company
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
A look at the shareholders of Nabors Industries Ltd. (NYSE:NBR) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 77% 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. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of Nabors Industries, beginning with the chart below.
View our latest analysis for Nabors Industries
What Does The Institutional Ownership Tell Us About Nabors Industries?
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.
Nabors Industries already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Nabors Industries' earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It looks like hedge funds own 5.2% of Nabors Industries shares. 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 BlackRock, Inc., with ownership of 15%. In comparison, the second and third largest shareholders hold about 7.1% and 5.2% of the stock. Furthermore, CEO Anthony Petrello is the owner of 4.2% of the company's shares.
We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.