Science Applications International Corporation (NYSE: SAIC) is largely controlled by institutional shareholders who own 81% of the company

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Every investor in Science Applications International Corporation (NYSE: SAIC) should know the most powerful shareholder groups. And the group that holds the biggest slice of the pie is made up of 81%-owned institutions. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

Given the huge amount of money and research capabilities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, having a considerable amount of institutional money invested in a business is often considered a desirable trait.

Let’s dive deeper into each type of Science Applications International owner, starting with the table below.

Check out our latest analysis for Science Applications International

What does institutional ownership tell us about Science Applications International?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Science Applications International already has institutions on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Science Applications International’s revenue history below. Of course, the future is what really matters.

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NYSE: SAIC Earnings and Revenue Growth May 14, 2022

Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. Hedge funds don’t have a lot of shares in Science Applications International. The company’s largest shareholder is Wellington Management Group LLP, with a 10% stake. For context, the second shareholder owns approximately 9.3% of the outstanding shares, followed by an 8.6% ownership by the third shareholder.

A closer look at our ownership figures suggests that the top 11 shareholders hold a combined ownership of 50%, implying that no single shareholder has a majority.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider property of Science Applications International

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that Science Applications International Corporation insiders own less than 1% of the company. Keep in mind this is a big company and insiders own $25 million worth of stock. The absolute value can be more important than the proportional share. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.

General public property

With a 19% stake, the general public, consisting mainly of individual investors, has some influence on Science Applications International. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 3 warning signs for Science Applications International which you should be aware of before investing here.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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