Reckitt Benckiser Group plc (LON:RKT) is favoured by institutional owners who hold 86% of the company

In This Article:

Key Insights

  • Given the large stake in the stock by institutions, Reckitt Benckiser Group's stock price might be vulnerable to their trading decisions

  • 50% of the business is held by the top 25 shareholders

  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Reckitt Benckiser Group plc (LON:RKT) can tell us which group is most powerful. The group holding the most number of shares in the company, around 86% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot 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 take a closer look to see what the different types of shareholders can tell us about Reckitt Benckiser Group.

See our latest analysis for Reckitt Benckiser Group

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Reckitt Benckiser 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.

We can see that Reckitt Benckiser Group 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. 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 Reckitt Benckiser Group, (below). Of course, keep in mind that there are other factors to consider, too.

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

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Reckitt Benckiser Group is not owned by hedge funds. BlackRock, Inc. is currently the largest shareholder, with 8.1% of shares outstanding. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 3.7% by the third-largest shareholder.

After doing some more digging, we found that the top 25 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.