In This Article:
Key Insights
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Given the large stake in the stock by institutions, Raymond James Financial's stock price might be vulnerable to their trading decisions
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A total of 9 investors have a majority stake in the company with 50% ownership
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Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of Raymond James Financial, Inc. (NYSE:RJF) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 78% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
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 delve deeper into each type of owner of Raymond James Financial, beginning with the chart below.
Check out our latest analysis for Raymond James Financial
What Does The Institutional Ownership Tell Us About Raymond James Financial?
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 Raymond James Financial does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Raymond James Financial's historic earnings and revenue below, but keep in mind there's always more to the story.
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 Raymond James Financial. The Vanguard Group, Inc. is currently the largest shareholder, with 11% of shares outstanding. With 9.5% and 6.7% of the shares outstanding respectively, Thomas James and BlackRock, Inc. are the second and third largest shareholders.
We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.