How many Babcock & Wilcox Enterprises, Inc. (NYSE: BW) shares do institutions own?
If you want to know who actually controls Babcock & Wilcox Enterprises, Inc. (NYSE: BW), then you will need to examine the makeup of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.
With a market cap of US $ 587 million, Babcock & Wilcox Enterprises is a small cap stock, so it might be overlooked by many institutional investors. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. Let’s dig deeper into each type of owner, to find out more about Babcock & Wilcox Enterprises.
Check out our latest review for Babcock & Wilcox Enterprises
What does institutional ownership tell us about Babcock & Wilcox companies?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
Babcock & Wilcox Enterprises already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Babcock & Wilcox Enterprises’ historical earnings and earnings below, but keep in mind that there is always more to tell.
We note that the hedge funds do not have a significant investment in Babcock & Wilcox Enterprises. B. Riley Financial, Inc. is currently the largest shareholder in the company with 25% of the shares outstanding. Neuberger Berman BD LLC is the second largest shareholder holding 6.9% of the common shares, and BlackRock, Inc. owns approximately 4.9% of the shares of the company. Additionally, we found that Kenneth Young, the CEO, owns 1.2% of the shares attributed to their name.
Upon closer inspection, we found that more than half of the company’s stock is owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider ownership of Babcock & Wilcox companies
The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
I can report that insiders own shares of Babcock & Wilcox Enterprises, Inc. As individuals, insiders collectively own US $ 18 million of the US $ 587 million company. It shows at least some alignment. You can click here to see if these insiders have bought or sold.
General public property
The general public has a 19% stake in Babcock & Wilcox Enterprises. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Owned by a private company
It appears that private companies own 4.0% of the shares of Babcock & Wilcox Enterprises. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
Public enterprise ownership
It can be seen that state-owned companies hold 25% of Babcock & Wilcox Enterprises shares upon issuance. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Babcock & Wilcox Enterprises, there are many other factors that we need to consider. To this end, you should inquire about the 4 warning signs we spotted with Babcock & Wilcox Enterprises (including 2 which are significant).
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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