In This Article:
Key Insights
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Institutions' substantial holdings in Pennon Group implies that they have significant influence over the company's share price
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A total of 13 investors have a majority stake in the company with 52% ownership
To get a sense of who is truly in control of Pennon Group Plc (LON:PNN), it is important to understand the ownership structure of the business. With 77% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's delve deeper into each type of owner of Pennon Group, beginning with the chart below.
View our latest analysis for Pennon Group
What Does The Institutional Ownership Tell Us About Pennon Group?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Pennon Group does have institutional investors; and they hold a good portion of the company's stock. 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 Pennon Group, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Pennon Group. Our data shows that Lazard Asset Management LLC is the largest shareholder with 9.3% of shares outstanding. Amundi Asset Management SAS is the second largest shareholder owning 7.5% of common stock, and Impax Asset Management Group Plc holds about 5.4% of the company stock.
Looking at the shareholder registry, we can see that 52% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.