In This Article:
Key Insights
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Institutions' substantial holdings in Filtronic implies that they have significant influence over the company's share price
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A total of 5 investors have a majority stake in the company with 55% ownership
To get a sense of who is truly in control of Filtronic plc (LON:FTC), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
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 take a closer look to see what the different types of shareholders can tell us about Filtronic.
Check out our latest analysis for Filtronic
What Does The Institutional Ownership Tell Us About Filtronic?
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 Filtronic. 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. 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 Filtronic, (below). Of course, keep in mind that there are other factors to consider, too.
Filtronic is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is D.M. Dixon with 18% of shares outstanding. Canaccord Genuity Asset Management Limited is the second largest shareholder owning 14% of common stock, and David Newlands holds about 12% of the company stock.
Our research also brought to light the fact that roughly 55% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.