The large shareholder groups of Fifth Third Bancorp (NASDAQ:FITB) have power over the company. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. Companies that have been privatized tend to have low insider ownership.
Fifth Third Bancorp has a market cap of US$24 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own part of the business. Looking at our ownership group data (below), it appears that institutions are visible on the share register. Let’s dig deeper into each owner type to learn more about Fifth Third Bancorp.
What does institutional ownership tell us about Fifth Third Bancorp?
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.
We can see that Fifth Third Bancorp has institutional investors; and they own a good part of the shares of 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. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Fifth Third Bancorp’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
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 stock in Fifth Third Bancorp, whose largest shareholder is The Vanguard Group, Inc., with a 12% stake. For context, the second-largest shareholder owns approximately 7.9% of the outstanding shares, followed by 5.9% ownership by the third-largest shareholder.
Looking at the shareholder register, we can see that 50% of the ownership is controlled by the 13 major shareholders, which means that no shareholder has a controlling interest in the ownership.
Institutional ownership research is a good way to assess and filter a stock’s expected performance. 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 ownership of Fifth Third Bancorp
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Our information suggests Fifth Third Bancorp insiders own less than 1% of the company. Being so large, we wouldn’t expect insiders to own a large portion of the shares. Together they own $105 million worth of stock. It’s good to see board members owning stock, but it can be helpful to check whether those insiders have bought.
General public property
With a 19% stake, the general public, consisting mostly of individual investors, has some influence over Fifth Third Bancorp. While this size of ownership may not be enough to sway a political decision in their favor, they can still make a collective decision. impact on company policies.
It is always useful to think about the different groups that own shares in a company. But to better understand Fifth Third Bancorp, we need to consider many other factors. Know that Fifth Third Bancorp shows 1 warning sign in our investment analysis you should know…
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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