key insights
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Significantly high institutional ownership means that SSE's share price is sensitive to institutional trading actions
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A total of 25 investors hold a majority stake in the company, holding 50% of the ownership.
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Analyst forecast data, combined with ownership research, can help you better assess a company's future performance.
If you want to know who actually controls SSE plc (LON:SSE), you need to look at its shared registry configuration. Institutional investors hold the largest stake in the company, holding his 85% of the shares. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Because institutional investors have vast resources and liquidity, their investment decisions tend to have significant influence, especially for individual investors. Therefore, having significant institutional investors invested in a company is often considered a desirable characteristic.
Let's take a closer look at each type of owner in SSE, starting with the table below.
Check out our latest analysis for SSE.
What does institutional ownership tell us about SSE?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
The SSE already has a registered share registry. In fact, they own a significant stake in the company. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. 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 SSE, (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own over 50% of a company, so when they come together they can strongly influence board decisions. SSE is not owned by hedge funds. Looking at our data, we see that the largest shareholder is BlackRock, Inc. with his 6.1% of shares outstanding. JPMorgan Chase & Co. Brokerage & Securities Investments and The Vanguard Group are the second and third largest shareholders with 5.0% and 4.6% of the shares outstanding, respectively. There is.
If we take a closer look at our ownership figures, we can see that the top 25 shareholders have a combined ownership of 50%, meaning that no single shareholder has a majority.
While researching 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 understand of a stock's expected performance. . There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership in SSE
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
Our data suggests that insiders own less than 1% of SSE plc in their own names. It is a very large company, so it would be surprising to see that insiders own a large percentage of the company. We can see that the board members collectively own £23m worth of shares (at current prices), although their holding is less than 1%. It's good to see board members owning shares, so it might be worth checking if insiders have been buying shares.
Open to the public
The general public, including retail investors, owns 13% of the company, so they can't be easily ignored. While this group doesn't necessarily call the shots, it can certainly have a big influence on how the company is run.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well. For example, we discovered that 4 warning signs for SSE (1 should not be ignored!) Here's what you need to know before investing.
But in the end it's the futureIt, not the past, determines how well the owner of this business will do. So we might consider this free report showing whether analysts are predicting a bright future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
