In This Article:
Key Insights
-
Given the large stake in the stock by institutions, Radius Recycling's stock price might be vulnerable to their trading decisions
-
The top 10 shareholders own 50% of the company
Every investor in Radius Recycling, Inc. (NASDAQ:RDUS) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 84% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's delve deeper into each type of owner of Radius Recycling, beginning with the chart below.
Check out our latest analysis for Radius Recycling
What Does The Institutional Ownership Tell Us About Radius Recycling?
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 Radius Recycling. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Radius Recycling's earnings history below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Radius Recycling. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 12% of shares outstanding. With 7.6% and 6.6% of the shares outstanding respectively, Columbia Management Investment Advisers, LLC and Dimensional Fund Advisors LP are the second and third largest shareholders. Additionally, the company's CEO Tamara Lundgren directly holds 3.8% of the total shares outstanding.
We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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.