How Institutional Investors Captured 63% of IBM (NYSE: IBM) and Profited from Last Week’s 3.5% Stock Surge

Investing in International Business Machines (NYSE: IBM)? It’s important to know who holds power over the company. Right now, institutional investors are the biggest players, owning 63% of the stock. This means their choices can significantly affect the stock price. For instance, a recent gain of 3.5% shows that these investors are doing well, and over the past year, the stock has returned an impressive 44%.

The top 25 shareholders own 41% of the company. This indicates a strong presence of institutional investors, including The Vanguard Group, which holds 10% of IBM’s shares. BlackRock and State Street are also significant shareholders with 8.5% and 6.0%, respectively.

Why does this matter? Institutional investors often compare their results to market benchmarks and usually opt for larger companies. This suggests they have confidence in IBM. However, big sales from a couple of major institutions could lead to a sharp price drop. So, it’s wise to track IBM’s financial trends.

Interestingly, insiders—those who work at the company—hold less than 1% of IBM’s shares. While it’s good to see some insider ownership, it’s not a large amount given the company’s size. Currently, insiders own shares worth about $259 million. It’s worth checking if they’ve been buying more shares, which could indicate their confidence in the company’s future.

Public shareholders, made up mainly of individual investors, own around 37% of IBM. While this is a notable chunk, it may not be enough to sway major decisions if they conflict with what institutional investors want.

Understanding IBM’s ownership is just the start. To get a full picture of the company’s potential, it’s essential to look at other factors, including analysts’ insights. They often have predictions about the future growth of companies, and their views can help guide investment decisions.

Lastly, if you’re considering investing in IBM or just curious about its future, be aware that there are several important aspects to keep an eye on, including potential warning signs.

Source link

institutional investors, International Business, Insider Ownership