In This Article:
Key Insights
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Given the large stake in the stock by institutions, Ferguson Enterprises' stock price might be vulnerable to their trading decisions
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49% of the business is held by the top 25 shareholders
A look at the shareholders of Ferguson Enterprises Inc. (NYSE:FERG) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 84% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And as as result, institutional investors reaped the most rewards after the company's stock price gained 7.6% last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 30%.
Let's take a closer look to see what the different types of shareholders can tell us about Ferguson Enterprises.
View our latest analysis for Ferguson Enterprises
What Does The Institutional Ownership Tell Us About Ferguson Enterprises?
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.
Ferguson Enterprises already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Ferguson Enterprises' 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. We note that hedge funds don't have a meaningful investment in Ferguson Enterprises. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 9.2%. BlackRock, Inc. is the second largest shareholder owning 6.5% of common stock, and FMR LLC holds about 4.1% of the company stock.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.