Advertisement
U.S. markets open in 3 hours 50 minutes
  • S&P Futures

    5,301.00
    -7.25 (-0.14%)
     
  • Dow Futures

    40,127.00
    -17.00 (-0.04%)
     
  • Nasdaq Futures

    18,463.00
    -40.75 (-0.22%)
     
  • Russell 2000 Futures

    2,133.20
    -5.20 (-0.24%)
     
  • Crude Oil

    81.72
    +0.37 (+0.45%)
     
  • Gold

    2,216.00
    +3.30 (+0.15%)
     
  • Silver

    24.55
    -0.21 (-0.84%)
     
  • EUR/USD

    1.0784
    -0.0046 (-0.42%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    13.02
    +0.24 (+1.88%)
     
  • GBP/USD

    1.2594
    -0.0044 (-0.35%)
     
  • USD/JPY

    151.4250
    +0.1790 (+0.12%)
     
  • Bitcoin USD

    70,638.28
    +707.49 (+1.01%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,966.45
    +34.47 (+0.43%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Here's What Intel Corporation's (NASDAQ:INTC) Shareholder Ownership Structure Looks Like

A look at the shareholders of Intel Corporation (NASDAQ:INTC) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Intel is a pretty big company. It has a market capitalization of US$182b. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Intel.

View our latest analysis for Intel

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Intel?

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.

Intel already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Intel's historic earnings and revenue below, but keep in mind there's always more to the story.

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

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Intel. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 8.6% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.4% and 4.4%, of the shares outstanding, respectively.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Intel

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of Intel Corporation in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$88m worth of shares (at current prices). 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

The general public, who are usually individual investors, hold a 37% stake in Intel. 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 Intel better, we need to consider many other factors. For example, we've discovered 2 warning signs for Intel (1 can't be ignored!) that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Advertisement