Every investor in Alliant Energy Corporation (NASDAQ:LNT) should know the most powerful shareholder groups. With 75% of the capital, the institutions own the maximum number of shares in the company. In other words, the group faces the maximum upside potential (or downside risk).
Given the huge amount of money and research capabilities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good chunk of institutional money invested in the company is usually a huge vote of confidence in its future.
Let’s dive deeper into each type of Alliant Energy owner, starting with the table below.
See our latest analysis for Alliant Energy
What does institutional ownership tell us about Alliant Energy?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
As you can see, institutional investors own a sizeable portion of Alliant Energy. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Alliant Energy’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Since institutional investors own more than half of the issued shares, the board will likely have to pay attention to their preferences. We note that hedge funds have no significant investment in Alliant Energy. The Vanguard Group, Inc. is currently the largest shareholder, with 13% of the shares outstanding. For context, the second shareholder owns approximately 8.6% of the outstanding shares, followed by a 5.6% ownership by the third shareholder.
After digging a little deeper, we found that the top 21 held combined ownership of 50% of the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Alliant Energy Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Insider ownership is positive when it signals that executives think like the true 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.
Our data suggests that insiders hold less than 1% of Alliant Energy Corporation in their own name. As this is a large company, we expect insiders to own only a small percentage. But it should be noted that they hold $22 million worth of stock. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.
General public property
With a 25% stake, the general public, consisting mainly of individual investors, has some influence over Alliant Energy. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
While it is worth considering the different groups that own a business, there are other, even more important factors. Be aware that Alliant Energy displays 2 warning signs in our investment analysis and 1 of them concerns…
At the end of the day the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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