U.S. markets open in 7 hours 8 minutes
  • S&P Futures

    3,758.00
    -7.50 (-0.20%)
     
  • Dow Futures

    30,835.00
    -43.00 (-0.14%)
     
  • Nasdaq Futures

    12,410.25
    -44.75 (-0.36%)
     
  • Russell 2000 Futures

    2,137.80
    -6.70 (-0.31%)
     
  • Crude Oil

    64.80
    +0.97 (+1.52%)
     
  • Gold

    1,695.60
    -5.10 (-0.30%)
     
  • Silver

    25.32
    -0.15 (-0.57%)
     
  • EUR/USD

    1.1959
    -0.0020 (-0.17%)
     
  • 10-Yr Bond

    1.5500
    0.0000 (0.00%)
     
  • Vix

    28.57
    +1.90 (+7.12%)
     
  • GBP/USD

    1.3883
    -0.0011 (-0.08%)
     
  • USD/JPY

    108.2810
    +0.3050 (+0.28%)
     
  • BTC-USD

    47,439.86
    -2,183.00 (-4.40%)
     
  • CMC Crypto 200

    949.18
    -38.03 (-3.85%)
     
  • FTSE 100

    6,650.88
    -24.59 (-0.37%)
     
  • Nikkei 225

    28,864.32
    -65.79 (-0.23%)
     

What You Need To Know About Hewlett Packard Enterprise Company's (NYSE:HPE) Investor Composition

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

Every investor in Hewlett Packard Enterprise Company (NYSE:HPE) should be aware of the most powerful shareholder groups. 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.

Hewlett Packard Enterprise has a market capitalization of US$19b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Hewlett Packard Enterprise.

See our latest analysis for Hewlett Packard Enterprise

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Hewlett Packard Enterprise?

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.

Hewlett Packard Enterprise 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. 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 Hewlett Packard Enterprise'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. Hedge funds don't have many shares in Hewlett Packard Enterprise. Dodge & Cox is currently the company's largest shareholder with 12% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 11% of common stock, and BlackRock, Inc. holds about 9.1% 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 studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Hewlett Packard Enterprise

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.

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 Hewlett Packard Enterprise Company 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$50m 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 holds a 17% stake in Hewlett Packard Enterprise. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Hewlett Packard Enterprise has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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.