Significantly higher institutional ownership implies that Apple’s stock price is sensitive to their trading actions.
40% of the business is owned by the top 25 shareholders
Recent sales by insiders
If you want to know what exactly Apple Inc. (NASDAQ:AAPL), you have to look at the composition of its share registry. The group holding the largest share in the company, about 55% to be precise, is institutions. In other words, the group faces maximum upside potential (or downside risk).
Last week’s 3.1% gain means institutional investors were on the positive end of the spectrum, even though the company has shown strong long-term trends. Last week’s gains should have further boosted the one-year return for shareholders which currently stands at 27%.
Let’s take a deeper look at each type of Apple owner, starting with the chart below.
See our latest analysis for Apple
division of ownership
What does institutional ownership tell us about Apple?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. Therefore they generally consider buying larger companies that are included in the respective benchmark index.
We can see that Apple has institutional investors; And he owns a good chunk of the company’s stock. This conveys some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop rapidly. So it’s worth taking a look at Apple’s earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Hedge funds don’t own many shares in Apple. The company’s largest shareholder is The Vanguard Group, Inc. , which owns 8.4%. BlackRock, Inc. The second largest shareholder is Berkshire Hathaway Inc., with 6.7% of the common stock. holds about 5.9% of the company’s stock.
Our study shows that the top 25 shareholders collectively control less than half the company’s shares, meaning the company’s shares are widely dispersed and there is no dominant shareholder.
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 understanding of a stock’s expected performance. There are plenty of analysts covering the stock, so it’s also worth taking a look at what they’re forecasting.
Apple’s internal ownership
While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the business, but the CEO will answer to the board, even though he is a member of it.
Insider ownership is positive when it signals that leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data shows that insiders own shares in Apple Inc. in their own name. Has less than 1% share. Being so large, we wouldn’t expect insiders to own a large portion of the stock. Collectively, they hold US$1.8b of stock. It’s good to see that board members own shares, but it might be worth checking if those insiders have been buying.
common public ownership
The general public, usually individual investors, own 39% of Apple. This size of ownership, although considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
public company ownership
It appears to us that public companies own 5.9% of Apple. This may be a strategic interest and both companies may have related business interests. It is possible that they have merged. This holding is probably worth further investigation.
Although it is worth considering the different groups that own a company, there are other factors that are even more important. For example, we have discovered 1 warning sign for Apple You should know about this before investing here.
If you want to know what analysts are predicting in terms of future growth, don’t miss this Free Report on analyst forecasts.
Note: The figures in this article have been calculated using data from the last twelve months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the entire year.
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This article from Simply Wall St is of a general nature. We only provide commentary based on historical data and analyst forecasts using unbiased methodology and our articles are not intended to provide financial advice. It does not recommend buying or selling any stock, and does not take into account your objectives, or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.