In This Article:
Key Insights
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Erie Indemnity's significant insider ownership suggests inherent interests in company's expansion
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A total of 3 investors have a majority stake in the company with 52% ownership
If you want to know who really controls Erie Indemnity Company (NASDAQ:ERIE), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, insiders were the biggest beneficiaries of last week’s 12% gain.
Let's delve deeper into each type of owner of Erie Indemnity, beginning with the chart below.
View our latest analysis for Erie Indemnity
What Does The Institutional Ownership Tell Us About Erie Indemnity?
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 Erie Indemnity. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Erie Indemnity, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Erie Indemnity. The company's largest shareholder is Thomas Hagen, with ownership of 33%. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 7.6% by the third-largest shareholder. Elizabeth Ann Vorsheck, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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.