U.S. markets close in 6 hours 25 minutes
  • S&P 500

    3,768.01
    -50.82 (-1.33%)
     
  • Dow 30

    30,550.02
    -479.29 (-1.54%)
     
  • Nasdaq

    11,025.99
    -151.91 (-1.36%)
     
  • Russell 2000

    1,719.37
    -19.47 (-1.12%)
     
  • Crude Oil

    108.50
    -1.28 (-1.17%)
     
  • Gold

    1,819.40
    +1.90 (+0.10%)
     
  • Silver

    20.52
    -0.21 (-1.03%)
     
  • EUR/USD

    1.0423
    -0.0021 (-0.20%)
     
  • 10-Yr Bond

    3.0260
    -0.0670 (-2.17%)
     
  • GBP/USD

    1.2160
    +0.0038 (+0.31%)
     
  • USD/JPY

    135.8350
    -0.7100 (-0.52%)
     
  • BTC-USD

    19,175.79
    -918.02 (-4.57%)
     
  • CMC Crypto 200

    410.61
    -20.86 (-4.83%)
     
  • FTSE 100

    7,153.09
    -159.23 (-2.18%)
     
  • Nikkei 225

    26,393.04
    -411.56 (-1.54%)
     

What You Need To Know About Brighthouse Financial, Inc.'s (NASDAQ:BHF) Investor Composition

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

A look at the shareholders of Brighthouse Financial, Inc. (NASDAQ:BHF) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

Brighthouse Financial is a pretty big company. It has a market capitalization of US$4.3b. 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 Brighthouse Financial.

See our latest analysis for Brighthouse Financial

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Brighthouse Financial?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Brighthouse Financial. 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 Brighthouse Financial, (below). Of course, keep in mind that there are other factors to consider, too.

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. Brighthouse Financial is not owned by hedge funds. Our data shows that Dodge & Cox is the largest shareholder with 12% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 9.9% of common stock, and BlackRock, Inc. holds about 9.8% of the company stock.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Brighthouse Financial

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Brighthouse Financial, Inc.. Keep in mind that it's a big company, and the insiders own US$29m worth of shares. The absolute value might be more important than the proportional share. 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-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.