With 58% institutional ownership, IMCD N.V. (AMS:IMCD) is a favorite amongst the big guns


With 58% institutional ownership, IMCD N.V. (AMS:IMCD) is a favorite amongst the big guns

Explore IMCD's Fair Values from the Community and select yours

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

A look at the shareholders of IMCD N.V. (AMS:IMCD) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of IMCD.

See our latest analysis for IMCD

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.

As you can see, institutional investors have a fair amount of stake in IMCD. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at IMCD's earnings history below. Of course, the future is what really matters.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in IMCD. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 7.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.9% and 4.9%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 19 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

While studying 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Previous articleNext article

POPULAR CATEGORY

corporate

13343

tech

11464

entertainment

16668

research

7787

misc

17504

wellness

13517

athletics

17698