U.S. markets close in 2 hours 41 minutes
  • S&P 500

    4,217.21
    +50.76 (+1.22%)
     
  • Dow 30

    33,842.22
    +552.14 (+1.66%)
     
  • Nasdaq

    14,127.97
    +97.59 (+0.70%)
     
  • Russell 2000

    2,283.71
    +45.96 (+2.05%)
     
  • Crude Oil

    73.69
    +2.05 (+2.86%)
     
  • Gold

    1,783.30
    +14.30 (+0.81%)
     
  • Silver

    26.01
    +0.04 (+0.16%)
     
  • EUR/USD

    1.1922
    +0.0057 (+0.48%)
     
  • 10-Yr Bond

    1.4770
    +0.0270 (+1.86%)
     
  • GBP/USD

    1.3930
    +0.0121 (+0.87%)
     
  • USD/JPY

    110.1920
    +0.0420 (+0.04%)
     
  • BTC-USD

    32,418.07
    -2,322.51 (-6.69%)
     
  • CMC Crypto 200

    789.00
    -61.35 (-7.21%)
     
  • FTSE 100

    7,062.29
    +44.82 (+0.64%)
     
  • Nikkei 225

    28,010.93
    -953.15 (-3.29%)
     

Could The Becton, Dickinson and Company (NYSE:BDX) Ownership Structure Tell Us Something Useful?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

A look at the shareholders of Becton, Dickinson and Company (NYSE:BDX) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$73b, Becton Dickinson is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Becton Dickinson.

Check out our latest analysis for Becton Dickinson

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Becton Dickinson?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Becton Dickinson does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Becton Dickinson's earnings history below. Of course, the future is what really matters.

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. We note that hedge funds don't have a meaningful investment in Becton Dickinson. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 8.4% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 7.7% of common stock, and Wellington Management Group LLP holds about 4.6% of the company stock.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 23 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Becton Dickinson

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate 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 under 1% of Becton, Dickinson and Company in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$152m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 14% ownership, the general public have some degree of sway over Becton Dickinson. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Becton Dickinson better, we need to consider many other factors. For example, we've discovered 3 warning signs for Becton Dickinson that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.