What you need to know about the investor mix of Aviva plc (LON: AV.)
Every investor in Aviva plc (LON: AV.) Needs to know the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that were previously owned by the state tend to have fewer insiders.
Aviva has a market cap of £ 15bn, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s dig deeper into each type of owner, to find out more about Aviva.
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What does institutional ownership tell us about Aviva?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Aviva already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they can be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Aviva’s earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. It appears that hedge funds hold 5.1% of Aviva shares. This is interesting, because hedge funds can be very active and activist. Many are looking for medium-term catalysts that will drive up the share price. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 7.1% of the shares outstanding. Meanwhile, the second and third shareholders respectively hold 5.1% and 4.5% of the outstanding shares.
After digging a little deeper, we found that the top 21 own a combined 51% stake in the business, suggesting that no shareholder has significant control over the business.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Aviva Insider Property
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data suggests that insiders own less than 1% of Aviva plc in their own name. It’s a very large company, so it would be surprising to see insiders owning a large part of the company. Although their stake is less than 1%, we can see that the board members collectively own shares worth £ 9.9million (at current prices). Arguably recent purchases and sales are just as important to consider. You can click here to see if any insiders have bought or sold.
General public property
The general public holds 12% of Aviva’s capital. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
It’s always worth thinking about the different groups that own shares in a company. But to understand Aviva better, there are many other factors to consider. Take risks for example – Aviva has 4 warning signs (and 2 which are a bit disturbing) we think you should be aware of.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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