In This Article:
Key Insights
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Given the large stake in the stock by institutions, Gray Media's stock price might be vulnerable to their trading decisions
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A total of 13 investors have a majority stake in the company with 51% ownership
To get a sense of who is truly in control of Gray Media, Inc. (NYSE:GTN), 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 70% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Institutional investors would probably welcome last week's 14% increase in the share price after a year of 59% losses as a sign that returns may to begin trending higher.
In the chart below, we zoom in on the different ownership groups of Gray Media.
View our latest analysis for Gray Media
What Does The Institutional Ownership Tell Us About Gray Media?
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.
As you can see, institutional investors have a fair amount of stake in Gray Media. 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 Gray Media's 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. We note that hedge funds don't have a meaningful investment in Gray Media. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 8.1% of shares outstanding. The second and third largest shareholders are Hilton Howell and The Capital Management Corporation, with an equal amount of shares to their name at 5.7%. Hilton Howell, who is the second-largest shareholder, also happens to hold the title of Co-Chief Executive Officer.
Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.