Given the large stake in the stock by institutions, Constellation Energy's stock price might be vulnerable to their trading decisions
The top 9 shareholders own 50% of the company
Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
To get a sense of who is truly in control of Constellation Energy Corporation (NASDAQ:CEG), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 82% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And as as result, institutional investors reaped the most rewards after the company's stock price gained 7.9% last week. The one-year return on investment is currently 70% and last week's gain would have been more than welcomed.
Let's delve deeper into each type of owner of Constellation Energy, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Constellation Energy?
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 Constellation Energy. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Constellation Energy, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Constellation Energy. The company's largest shareholder is Capital Research and Management Company, with ownership of 12%. For context, the second largest shareholder holds about 12% of the shares outstanding, followed by an ownership of 6.9% by the third-largest shareholder.
We did some more digging and found that 9 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Constellation Energy
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of Constellation Energy Corporation. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$81m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 18% stake in Constellation Energy. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Constellation Energy that you should be aware of before investing here.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
Constellation Energy Corporation (NASDAQ:CEG)の実際のコントロールを示すために、企業の所有構造を理解することが重要です。我々が見ると、機関が82%の所有権を持っていることがわかります。つまり、株価が上昇すれば(または下降すれば)、このグループは最も利益を得る可能性が高く(または最も損失を被る可能性が高い)です。
発行済株式の半分以上を機関投資家が所有しているため、取締役会はおそらく彼らの好みに注意を払わなければならないでしょう。 Constellation Energyにはヘッジファンドが有意な投資をしていないことに注意してください。 会社の最大の株主はCapital Research and Management Companyで、持株比率は12%です。 文脈を考慮すると、2番目に大きな株主は発行済株式の約12%を保有しており、3番目の最大株主は6.9%を保有しています。
私たちの最新のデータによると、内部持株率はConstellation Energy Corporationの1%未満です。非常に大きな企業なので、内部保有比率が大きいのを見ると驚くべきことです。彼らの保有割合は1%未満ですが、取締役会メンバーが現在の株価で8100万ドル相当の株式を所有しているのが見て取れます。取締役会メンバーが株を所有しているのは良いことですが、これらの内部者が購入をしているかどうかを確認する価値があるかもしれません。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。