Key Insights
Given the large stake in the stock by institutions, Exxon Mobil's stock price might be vulnerable to their trading decisions
A total of 25 investors have a majority stake in the company with 42% ownership
Every investor in Exxon Mobil Corporation (NYSE:XOM) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about Exxon Mobil.
View our latest analysis for Exxon Mobil
What Does The Institutional Ownership Tell Us About Exxon Mobil?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Exxon Mobil. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Exxon Mobil's earnings history below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Exxon Mobil. The Vanguard Group, Inc. is currently the company's largest shareholder with 9.7% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 6.9% of common stock, and State Street Global Advisors, Inc. holds about 5.3% of the company stock.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Exxon Mobil
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of Exxon Mobil Corporation in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$496m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 39% stake in Exxon Mobil. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Exxon Mobil you should know about.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
https://news.google.com/rss/articles/CBMiVGh0dHBzOi8vdWsuc3BvcnRzLnlhaG9vLmNvbS9uZXdzLzYwLW93bmVyc2hpcC1leHhvbi1tb2JpbC1jb3Jwb3JhdGlvbi0xNDAwMjE3MTcuaHRtbNIBXGh0dHBzOi8vdWsuc3BvcnRzLnlhaG9vLmNvbS9hbXBodG1sL25ld3MvNjAtb3duZXJzaGlwLWV4eG9uLW1vYmlsLWNvcnBvcmF0aW9uLTE0MDAyMTcxNy5odG1s?oc=5
2023-06-11 14:00:21Z
CBMiVGh0dHBzOi8vdWsuc3BvcnRzLnlhaG9vLmNvbS9uZXdzLzYwLW93bmVyc2hpcC1leHhvbi1tb2JpbC1jb3Jwb3JhdGlvbi0xNDAwMjE3MTcuaHRtbNIBXGh0dHBzOi8vdWsuc3BvcnRzLnlhaG9vLmNvbS9hbXBodG1sL25ld3MvNjAtb3duZXJzaGlwLWV4eG9uLW1vYmlsLWNvcnBvcmF0aW9uLTE0MDAyMTcxNy5odG1s
Bagikan Berita Ini
0 Response to "With 60% ownership, Exxon Mobil Corporation (NYSE:XOM) boasts of strong institutional backing - Yahoo Eurosport UK"
Post a Comment