With 82% ownership of the shares, General Dynamics Corporation (NYSE:GD) is heavily dominated by institutional owners
Examining the people or entities that hold shares in General Dynamics Corporation (NYSE:GD) can provide valuable insights into the dominant group. In this case, it is evident that institutions possess the majority stake in the company, amounting to 82% ownership. In simpler terms, this group holds the greatest potential for both positive gains and negative setbacks.
Considering the tremendous financial resources and research capabilities they possess, institutional ownership holds significant influence, particularly among individual investors. Consequently, it is widely considered advantageous for a company to have a substantial amount of institutional funds invested in it.
Now, let's explore and examine in more detail each category of General Dynamics owners, commencing with the provided graph.
Take a look at our most recent examination of General Dynamics.
Insider Ownership's Insight Into General Dynamics
Organizations generally assess their performance by comparing it to a standard when communicating with their own investors. Consequently, they tend to show increased interest in a stock when it is listed in a significant index. It is reasonable to anticipate that the majority of companies, particularly those experiencing growth, would have a presence of institutions among their investors.
From what we can observe, General Dynamics has garnered considerable interest from large-scale investors. This indicates a level of trust and recognition among experienced financial experts. However, we must not solely depend on this aspect as institutional investors are not immune to making poor investment decisions, much like anyone else. When numerous institutions simultaneously alter their perception of a particular stock, it can lead to a rapid decrease in its market value. Hence, it is crucial to delve into General Dynamics' past earnings performance. Nonetheless, it is important to recognize that the future holds the ultimate significance.
Given that institutional investors hold a majority stake in the company's issued stock, it is probable that the board will need to take their preferences into consideration. General Dynamics does not have a significant number of shares owned by hedge funds. LongView Asset Management, LLC currently holds the largest stake in the company with 10% of outstanding shares. Meanwhile, the second and third largest shareholders hold 8.1% and 6.0% of the outstanding shares, respectively.
Upon further investigation, we unearthed some additional information revealing that about half of the register is held by 10 prominent shareholders. This suggests that in addition to these major shareholders, there exist a handful of smaller shareholders, thereby creating a certain level of equilibrium in their respective interests.
Although it is logical to examine the institutional ownership information of a company, it is equally rational to analyze the opinions of analysts to determine the prevailing trends. Considering that there is a considerable number of experts evaluating the stock, it would be beneficial to ascertain their collective perspective on what lies ahead.
The meaning of an insider may vary slightly across various nations, but individuals who serve on the board of directors are always included. The management of the company reports to the board, which is expected to safeguard the shareholders' concerns. Interestingly, on certain occasions, high-ranking executives themselves become board members.
When insiders own a significant stake in a company, it indicates that the leaders are acting with the mindset of genuine owners. Nevertheless, an excessive level of insider ownership may grant excessive influence to a select few individuals within the organization, which can prove detrimental in certain situations.
According to the data we have, individuals within General Dynamics Corporation possess less than 1% of the company. Given its large size, it is unsurprising that insiders only hold a small portion. However, it is noteworthy that the value of the shares owned by these insiders amounts to US$378 million. It is equally significant to take into account recent activities of buying and selling. To find out whether insiders have been involved in such transactions, you can click here.
The ordinary populace, typically comprising of independent shareholders, possess around 11% ownership in General Dynamics. Although they may not have direct control, they do possess the ability to significantly impact the company's operations.
It is important to consider the various parties that hold stock in a company. However, to gain a deeper understanding of General Dynamics, we must take into account numerous other elements. One such aspect to consider is potential risks. Every company faces them, and we have identified 1 red flag for General Dynamics that you should be aware of.
In the grand scheme of things, the future holds utmost significance. You are able to obtain this complimentary document containing predictions made by analysts for the company.
Note: The statistics mentioned in this blog post have been derived from the data collected over the past twelve months. The timeframe considered spans from the first day to the last day of the month stated in the financial statement. Please bear in mind that these numbers might not align with the figures presented in the comprehensive annual report.
We Simplify Valuation Complexities
Discover if General Dynamics is possibly over or undervalued by reviewing our extensive analysis, encompassing fair value assessments, potential risks, cautionary alerts, dividend evaluations, insider dealings, and overall financial wellbeing.
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This blog post from Simply Wall St is of a general nature. We offer opinions based on past information and predictions from analysts, using a fair approach. Our articles are purely for informative purposes and should not be considered as financial guidance. They should not be used to make decisions about buying or selling stocks, and they do not consider your personal goals or financial situation. Our goal is to provide analysis that focuses on long-term trends using fundamental data. Be aware that our analysis may not include the most up-to-date announcements or qualitative information from companies that could affect stock prices. Simply Wall St does not own any stocks mentioned in this article.
