key findings
- Significant possession by individual investors in STMicroelectronics indicates that collectively they wield a greater influence in management and business strategy.
- Top 19 shareholders hold 50% of the company
- Institutional possession in STMicroelectronics is 36%
Understanding the actual control of STMicroelectronics NV (EPA:STMPA) is crucial, and the group with the largest stake is individual investors with 37% ownership. This implies that the group stands to gain the most if the stock increases (or lose the most if there is an economic downturn).
Thank you for reading this post, don't forget to subscribe!While individual investors were the group that gained the most from last week’s €3.0b market cap increase, institutions also contributed to 36% of that increase.
Exploring the ownership composition of STMicroelectronics can provide valuable insights.
View our most recent analysis for STMicroelectronics
ENXTPA:STMPA Ownership Breakdown November 19, 2023
What is the significance of institutional ownership in the context of STMicroelectronics?
Institutional investors typically compare their own returns to the returns of a commonly followed index. Therefore, they generally consider acquiring larger companies that are part of the respective benchmark index.
It is evident that STMicroelectronics has institutional investors with a noteworthy stake in the company’s stock. This may signify that the company holds a certain level of credibility in the investment community. However, it is wise to be cautious about relying solely on the perceived endorsement from institutional investors as they can also be fallible. If multiple institutions simultaneously alter their opinion on a stock, it could result in a rapid decline in the share price. Therefore, it is essential to examine STMicroelectronics’ earnings history. Ultimately, the future prospects are what truly matter.
ENXTPA:STMPA Earnings and Revenue Growth November 19, 2023
STMicroelectronics is not under the ownership of hedge funds. Stmicroelectronics Holding NV currently holds the largest share with 28% of the shares. Subsequently, BlackRock, Inc. is the second biggest shareholder with an 8.2% ownership of the common stock, and Amundi Asset Management SAS possesses approximately 3.1% of the company’s stock.
Further investigation reveals that the top 19 shareholders collectively own 50% of the company, indicating that no single shareholder wields significant control over the company.
While it is logical to scrutinize institutional ownership data for a company, it is also advisable to consider analyst sentiments to gauge market trends. Given that there are numerous analysts covering the stock, it is worthwhile to review their forecasts.
Insider possession of STMicroelectronics
The definition of an insider may slightly vary across different countries, but members of the board of directors are always considered as such. The company management oversees the business, however, the CEO is accountable to the board, despite being a member of it.
Insider ownership is generally viewed positively as it may indicate that the board is in sync with other shareholders. Nevertheless, in some instances, excessive power is concentrated within this group.
Our data shows that insiders directly own less than 1% of STMicroelectronics NV. However, it is conceivable that insiders may have an indirect interest through a more intricate structure. Given that this is a sizable company, it is expected for insiders to own a small percentage of it, yet it is noteworthy that they own €120k worth of shares. Arguably, it is equally important to consider recent acquisitions and divestitures. You can click here to check whether insiders have been engaging in transactions.
Common public possession
The general public, typically individual investors, holds 37% of STMicroelectronics. While this level of ownership is considerable, it may not suffice to influence company policies if the decision does not align with other major shareholders.
Private company possession
Private companies possess 28% of the issued shares. Drawing definitive conclusions from this fact alone is challenging, so it is worthwhile to examine the owners of these private companies. Sometimes insiders or other related parties have an interest in the shares of a public company through a separate private entity.
Next Steps:
The true ownership of a company is a compelling topic. However, gaining comprehensive insights requires considering other information as well. It is essential to note that STMicroelectronics is displaying 1 warning sign in our investment analysis Tap into our comprehensive report to understand more…
but ultimately this is the futureThe past alone cannot determine the future performance of this business owner. Hence, it is advisable to review this free report showcasing analyst predictions of a promising future.
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.
Source: simplywall.st
