In This Article:
Key Insights
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Institutions' substantial holdings in NatWest Group implies that they have significant influence over the company's share price
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52% of the business is held by the top 4 shareholders
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls NatWest Group plc (LON:NWG), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 47% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Institutional investors was the group most impacted after the company's market cap fell to UK£25b last week. However, the 25% one-year returns may have helped alleviate their overall losses. They should, however, be mindful of further losses in the future.
Let's take a closer look to see what the different types of shareholders can tell us about NatWest Group.
See our latest analysis for NatWest Group
What Does The Institutional Ownership Tell Us About NatWest Group?
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 NatWest Group. 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. 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 NatWest Group's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in NatWest Group. Our data shows that HM Treasury is the largest shareholder with 42% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 4.3% of common stock, and Norges Bank Investment Management holds about 3.4% of the company stock.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of NatWest Group
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.