A look at the shareholders of Science Applications International Corporation (NYSE: SAIC) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. We also tend to see a decrease in the number of insiders in companies that were previously state-owned.
Science Applications International is a fairly large company. It has a market capitalization of 4.9 billion US dollars. Normally, institutions would own a significant share of a company of this size. Our analysis of company ownership, below, shows that institutional investors bought the company. Let’s take a closer look at what different types of shareholders can tell us about Science Applications International.
What does institutional ownership tell us about Science Applications International?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Science Applications International already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. 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. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Science Applications International’s earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half of the issued shares, the board will likely have to pay attention to their preferences. Hedge funds don’t have a lot of shares in Science Applications International. The main shareholder of the company is Wellington Management Group LLP, with an 11% stake. For context, the second largest shareholder owns around 9.1% of the outstanding shares, followed by 8.5% ownership by the third largest shareholder.
Looking at the register of shareholders, we can see that 50% of the property is controlled by the top 11 shareholders, which means that no shareholder has a controlling interest in the property.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider property of Science Applications International
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Science Applications International Corporation. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own $ 31 million in shares. Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders bought or sold.
General public property
With a 19% stake, the general public, made up mainly of individual investors, has some influence over Science Applications International. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
It’s always worth thinking about the different groups that own shares in a company. But to understand Science Applications International better, there are many other factors to consider. To this end, you need to know the 2 warning signs we spotted with Science Applications International .
Ultimately the future is the most important. You can access this free business analyst forecast report.
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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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.