In This Article:
Key Insights
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Significantly high institutional ownership implies Croda International's stock price is sensitive to their trading actions
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A total of 15 investors have a majority stake in the company with 50% ownership
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Croda International Plc (LON:CRDA), 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 88% 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.
In the chart below, we zoom in on the different ownership groups of Croda International.
See our latest analysis for Croda International
What Does The Institutional Ownership Tell Us About Croda International?
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 Croda International does have institutional investors; and they hold a good portion of the company's stock. 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 Croda International'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. Croda International is not owned by hedge funds. The company's largest shareholder is BlackRock, Inc., with ownership of 8.4%. Meanwhile, the second and third largest shareholders, hold 7.8% and 4.9%, of the shares outstanding, respectively.
A closer look at our ownership figures suggests that the top 15 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.