Could The International Business Machines Corporation (NYSE:IBM) Ownership Structure Tell Us …

The second largest shareholder with 6.9%, is BlackRock, Inc., followed by State Street Global Advisors, Inc., with an ownership of 6.2%. Our studies …

Every investor in International Business Machines Corporation (NYSE:IBM) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

International Business Machines is a pretty big company. It has a market capitalization of US$137b. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about International Business Machines.

View our latest analysis for International Business Machines

NYSE:IBM Ownership Summary, February 12th 2020
NYSE:IBM Ownership Summary, February 12th 2020

What Does The Institutional Ownership Tell Us About International Business Machines?

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 own 58% of International Business Machines. 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 International Business Machines, (below). Of course, keep in mind that there are other factors to consider, too.

NYSE:IBM Income Statement, February 12th 2020
NYSE:IBM Income Statement, February 12th 2020

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 International Business Machines. The Vanguard Group, Inc. is currently the company’s largest shareholder with 8.2% of shares outstanding. The second largest shareholder with 6.9%, is BlackRock, Inc., followed by State Street Global Advisors, Inc., with an ownership of 6.2%.

Our studies suggest that the top 25 shareholders collectively control less than 50% of the company’s shares, meaning that the company’s shares are widely disseminated and there is no dominant shareholder.

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. 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 International Business Machines

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 information suggests that International Business Machines Corporation insiders own under 1% of the company. As it is a large company, we’d only expect insiders to own a small percentage of it. But it’s worth noting that they own US$131m worth of shares. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

With a 42% ownership, the general public have some degree of sway over IBM. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we’ve spotted with International Business Machines .

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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SoftBank Group quarterly profit wiped out by Vision Fund losses

TOKYO (Reuters) – Japan’s SoftBank Group Corp said on Wednesday its third-quarter operating profit fell 99%, well short of analyst estimates, pulled …

TOKYO (Reuters) – Quarterly profit at SoftBank Group Corp (9983.T) was almost wiped out as the Japanese technology giant was hit for a second straight quarter by losses at its $100 billion Vision Fund.

Wednesday’s dismal results could further dampen investor enthusiasm for founder Masayoshi Son’s big bets on untested start-ups. While Son told a news conference SoftBank had turned a corner, he also said he has been forced to scale back a second Vision Fund while investing with only SoftBank’s own capital.

That marks a major climbdown from July, when SoftBank said it had attracted $108 billion in pledges for a second mega-fund.

More pointedly, it shows how the bailout of start-up WeWork last year and other missteps have put a chill on the tech investing scene and given SoftBank shareholder Elliott ammunition to lobby for change.

“We have caused a lot of concern,” Son said in Tokyo following the results, adding he needs to “give everyone piece of mind” to secure outside funds for Vision Fund 2.

Group profit was 2.6 billion yen ($24 million) in the October-December quarter versus 438 billion yen a year before. The Vision Fund posted an operating loss of 225 billion yen ($2.05 billion) for the quarter compared with a 176 billion yen profit in the same period a year earlier.

But Son, known for an ebullience and charisma that is still rare in corporate Japan, said the company’s performance was already improving.

“The tide is turning,” he said.

BIG STAKE

“Softbank should focus on one thing, shareholder value creation,” said Jeffries analyst Atul Goyal in a note to clients ahead of the earnings.

Son pointed to a rally in prices at the Vision Fund’s handful of listed investments and news overnight that a U.S. federal judge had rejected an antitrust challenge to the proposed merger of SoftBank’s Sprint Corp (S.N) and T-Mobile US Inc (TMUS.O).

Shares of SoftBank finished up 12% in Tokyo before the results and after the U.S. court decision.

Son has long argued SoftBank’s shares are undervalued, a position shared by U.S. hedge fund Elliott Management, which has recently emerged as a prominent shareholder. Elliott, one of the world’s best known activist investors, is pushing for changes including $20 billion in stock buybacks, sources said last week.

SoftBank has held discussions with Elliott and is aligned on improving shareholder value, Son said, adding that while open to potentially buying back shares, he was in “no hurry” to sell part of a 26% shareholding in Alibaba (BABA.N) to fund buybacks.

The Vision Fund, which is backed by Saudi Arabia and has single-handedly changed the face of tech investing, said it had invested $74.6 billion in 88 companies as at the end of December, when those investments were worth $79.8 billion.

Analysts have said it is difficult to evaluate SoftBank’s performance due to a lack of disclosure around Vision Fund’s internal valuations.

Son’s investing credentials took a hit in the August-September quarter when the Vision Fund recorded an $8.9 billion operating loss.

Since then, a slew of portfolio companies – from hotel-booking platform Oyo to cloud robotics firm CloudMinds – have cut jobs and come under pressure to demonstrate the long-term viability of their business models.

FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. REUTERS/Issei Kato/File Photo

The fund itself has also lost key employees.

($1 = 109.9900 yen)

Reporting by Sam Nussey; Editing by Christopher Cushing, David Dolan and Mark Potter

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Do Institutions Own Helixmith Co., Ltd (KOSDAQ:084990) Shares?

The second and third largest shareholders are BlackRock, Inc. and The Vanguard Group, Inc., holding 3.0% and 2.3%, respectively. Our studies …

A look at the shareholders of Helixmith Co., Ltd (KOSDAQ:084990) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.

Helixmith has a market capitalization of ₩1.7t, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Helixmith.

See our latest analysis for Helixmith

KOSDAQ:A084990 Ownership Summary, February 12th 2020
KOSDAQ:A084990 Ownership Summary, February 12th 2020

What Does The Institutional Ownership Tell Us About Helixmith?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Helixmith already has institutions on the share registry. Indeed, they own 10% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Helixmith’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

KOSDAQ:A084990 Income Statement, February 12th 2020
KOSDAQ:A084990 Income Statement, February 12th 2020

Hedge funds don’t have many shares in Helixmith. With a 10% stake, CEO Sun-Young Kim is the largest shareholder. The second and third largest shareholders are BlackRock, Inc. and The Vanguard Group, Inc., holding 3.0% and 2.3%, respectively.

Our studies suggest that the top 25 shareholders collectively control less than 50% of the company’s shares, meaning that the company’s shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Helixmith

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 a reasonable proportion of Helixmith Co., Ltd. It has a market capitalization of just ₩1.7t, and insiders have ₩211b worth of shares in their own names. That’s quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public — mostly retail investors — own 77% of Helixmith. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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 for instance, the ever-present spectre of investment risk. We’ve identified 5 warning signs with Helixmith (at least 2 which are a bit concerning) , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this freereport on analyst forecasts for the company.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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CyberOptics Co. (NASDAQ:CYBE) Short Interest Down 5.8% in December

Acadian Asset Management LLC grew its position in CyberOptics by 727.4% during the second quarter. Acadian Asset Management LLC now owns …

CyberOptics logoCyberOptics Co. (NASDAQ:CYBE) was the target of a significant decline in short interest in the month of December. As of December 13th, there was short interest totalling 137,400 shares, a decline of 5.8% from the November 28th total of 145,900 shares. Approximately 2.0% of the company’s shares are sold short. Based on an average daily volume of 27,400 shares, the short-interest ratio is currently 5.0 days.

CYBE has been the subject of a number of recent analyst reports. Lake Street Capital lifted their price objective on CyberOptics from $18.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday, October 24th. Zacks Investment Research raised CyberOptics from a “hold” rating to a “strong-buy” rating and set a $21.00 price objective for the company in a research report on Wednesday, November 6th. Finally, ValuEngine downgraded CyberOptics from a “buy” rating to a “hold” rating in a research report on Monday, November 4th.

Shares of NASDAQ:CYBE opened at $18.00 on Monday. The company has a market cap of $128.31 million, a P/E ratio of 75.00, a P/E/G ratio of 16.67 and a beta of 0.17. The company has a quick ratio of 3.65, a current ratio of 5.57 and a debt-to-equity ratio of 0.06. CyberOptics has a 52 week low of $11.55 and a 52 week high of $22.61. The business has a fifty day simple moving average of $17.78 and a 200-day simple moving average of $15.39.

CyberOptics (NASDAQ:CYBE) last posted its quarterly earnings results on Wednesday, October 23rd. The scientific and technical instruments company reported ($0.05) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.04) by ($0.01). CyberOptics had a net margin of 2.97% and a return on equity of 3.14%. The firm had revenue of $12.39 million for the quarter. Sell-side analysts expect that CyberOptics will post 0.09 earnings per share for the current fiscal year.

A number of hedge funds have recently bought and sold shares of CYBE. River & Mercantile Asset Management LLP purchased a new stake in CyberOptics during the second quarter valued at about $1,914,000. Marshall Wace LLP grew its position in CyberOptics by 193.7% during the second quarter. Marshall Wace LLP now owns 48,457 shares of the scientific and technical instruments company’s stock valued at $786,000 after acquiring an additional 31,956 shares during the period. D. E. Shaw & Co. Inc. purchased a new stake in CyberOptics during the second quarter valued at about $239,000. Acadian Asset Management LLC grew its position in CyberOptics by 727.4% during the second quarter. Acadian Asset Management LLC now owns 9,556 shares of the scientific and technical instruments company’s stock valued at $156,000 after acquiring an additional 8,401 shares during the period. Finally, Marshall Wace North America L.P. purchased a new stake in CyberOptics during the first quarter valued at about $74,000. 54.27% of the stock is owned by hedge funds and other institutional investors.

About CyberOptics

CyberOptics Corporation develops and manufactures high precision sensing technology solutions worldwide. Its sensors are being used in surface mount technology (SMT), semiconductor, and metrology markets to improve yields and productivity. The company offers multi-reflection suppression sensors for application in the SMT, semiconductor, and metrology markets; and strobe inspection modules for use in 2D automated optical inspection (AOI) systems.

Read More: Dividend Achievers

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Advisor Group Inc. Grows Stock Holdings in Blackrock Muniyield Quality Fund Inc. (NYSE:MQY)

Millennium Management LLC acquired a new position in Blackrock Muniyield Quality Fund during the 4th quarter worth $314,000. Finally, Raymond …

Blackrock Muniyield Quality Fund logoAdvisor Group Inc. lifted its position in Blackrock Muniyield Quality Fund Inc. (NYSE:MQY) by 300.7% during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 8,928 shares of the financial services provider’s stock after buying an additional 6,700 shares during the period. Advisor Group Inc.’s holdings in Blackrock Muniyield Quality Fund were worth $130,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently modified their holdings of MQY. First Trust Advisors LP bought a new stake in shares of Blackrock Muniyield Quality Fund in the 1st quarter valued at approximately $145,000. Northwestern Mutual Wealth Management Co. lifted its holdings in Blackrock Muniyield Quality Fund by 23.7% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 15,624 shares of the financial services provider’s stock worth $220,000 after buying an additional 2,995 shares in the last quarter. Cetera Advisor Networks LLC acquired a new position in Blackrock Muniyield Quality Fund during the 1st quarter worth $270,000. Millennium Management LLC acquired a new position in Blackrock Muniyield Quality Fund during the 4th quarter worth $314,000. Finally, Raymond James Financial Services Advisors Inc. lifted its holdings in Blackrock Muniyield Quality Fund by 10.2% during the 1st quarter. Raymond James Financial Services Advisors Inc. now owns 45,606 shares of the financial services provider’s stock worth $643,000 after buying an additional 4,231 shares in the last quarter. Institutional investors and hedge funds own 18.88% of the company’s stock.

Shares of MQY stock traded down $0.27 during trading hours on Friday, reaching $14.63. The company had a trading volume of 128,600 shares, compared to its average volume of 51,416. The company has a 50 day moving average of $14.92 and a 200 day moving average of $14.41. Blackrock Muniyield Quality Fund Inc. has a 1-year low of $12.70 and a 1-year high of $15.31.

The company also recently announced a — dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Monday, September 16th will be issued a dividend of $0.053 per share. This represents a yield of 4.2%. The ex-dividend date is Friday, September 13th.

Blackrock Muniyield Quality Fund Company Profile

BlackRock MuniYield Quality Fund, Inc is a close ended fixed income mutual fund launched by BlackRock, Inc It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in long-term municipal obligations the interest on which is exempt from federal income taxes. The fund also invests in short-term securities.

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Institutional Ownership by Quarter for Blackrock Muniyield Quality Fund (NYSE:MQY)

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