Institutional investors in First Commonwealth Financial Corporation (NYSE:FCF) lost 3.9% last week but have reaped the benefits of longer-term growth

In This Article:

Key Insights

  • Significantly high institutional ownership implies First Commonwealth Financial's stock price is sensitive to their trading actions

  • The top 9 shareholders own 51% of the company

  • Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of First Commonwealth Financial Corporation (NYSE:FCF) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 75% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Institutional investors was the group most impacted after the company's market cap fell to US$1.7b last week. However, the 37% one-year returns may have helped alleviate their overall losses. We would assume however, that they would be on the lookout for weakness in the future.

Let's take a closer look to see what the different types of shareholders can tell us about First Commonwealth Financial.

View our latest analysis for First Commonwealth Financial

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About First Commonwealth Financial?

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.

First Commonwealth Financial already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 First Commonwealth Financial, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. First Commonwealth Financial is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 14% of shares outstanding. With 11% and 6.8% of the shares outstanding respectively, The Vanguard Group, Inc. and Dimensional Fund Advisors LP are the second and third largest shareholders.

We did some more digging and found that 9 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.