Every investor in Old Republic International Corporation (NYSE: ORI) should know about the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that were previously state-owned tend to have fewer insiders.
Old Republic International has a market cap of $ 7.4 billion, so it’s too big to go unnoticed. We would expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different property groups, to find out more about Old Republic International.
NYSE Ownership Breakdown: ORI November 30, 2021
What does institutional ownership tell us about Old Republic International?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that Old Republic International has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Old Republic International’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
NYSE: ORI Profits and Revenue Growth November 30, 2021
Since institutional investors own more than half of the issued shares, the board will likely need to pay attention to their preferences. We note that the hedge funds do not have a significant investment in Old Republic International. BlackRock, Inc. is currently the largest shareholder, with 9.6% of the shares outstanding. The Vanguard Group, Inc. is the second largest shareholder holding 9.3% of the common stock, and State Street Global Advisors, Inc. owns approximately 7.3% of the shares of the company.
A closer look at our ownership figures suggests that the top 14 shareholders have a combined 50% ownership, implying that no shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. While there is some coverage from analysts, the company is likely not widely covered. He could therefore attract more attention, at the bottom of the track.
Old Republic International Insider Ownership
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that the insiders own shares in Old Republic International Corporation. Insiders have a significant stake worth $ 103 million. Most would see this as a real benefit. Most would say it shows the alignment of interests between shareholders and the board. still worth checking out if these insiders have sold.
General public property
The general public, who are generally individual investors, own 18% of the capital of Old Republic International. This size of ownership, while considerable, may not be enough to change company policy if the decision is not aligned with other large shareholders.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Old Republic International, there are many other factors that we need to consider. Concrete example: we have spotted 1 warning sign for Old Republic International you must be aware.
But finally it’s the future, not the past, which will determine the success of the owners of this business. That is why we think it is advisable to take a look at this free report showing whether analysts predict a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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