Key Insights

• Given the large stake in the stock by institutions, Brookfield Business' stock price might be vulnerable to their trading decisions

• 65% of the company is held by a single shareholder (Brookfield Corporation)

• Recent purchases by insiders

If you want to know who really controls Brookfield Business Corporation (NYSE:BBUC), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 90% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's delve deeper into each type of owner of Brookfield Business, beginning with the chart below.

View our latest analysis for Brookfield Business

What Does The Institutional Ownership Tell Us About Brookfield Business?

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.

We can see that Brookfield Business does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Brookfield Business' earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Brookfield Business. Brookfield Corporation is currently the largest shareholder, with 65% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 8.3% of the shares outstanding, followed by an ownership of 2.1% by the third-largest shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.