The large shareholder groups of Autodesk, Inc. (NASDAQ: ADSK) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
With a market cap of US $ 74 billion, Autodesk is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. In the graph below, we can see that the institutions hold shares in the company. We can zoom in on the different property groups to learn more about Autodesk.
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What does institutional ownership tell us about Autodesk?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
As you can see, institutional investors own a large stake in Autodesk. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Autodesk’s earnings history below. Of course, the future is what really matters.
Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. Autodesk is not owned by hedge funds. BlackRock, Inc. is currently the largest shareholder in the company with 8.1% of the shares outstanding. With 8.0% and 4.4% of shares outstanding respectively, The Vanguard Group, Inc. and Capital Research and Management Company are the second and third largest shareholders.
A closer look at our ownership figures suggests that the top 17 shareholders have a combined 51% ownership, implying that no single shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Autodesk Insider Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders of Autodesk, Inc. own less than 1% of the company. It’s a very large company, so it would be surprising to see insiders owning much of the company. Although their stake is less than 1%, we can see that the board members collectively own $ 85 million in stock (at current prices). In this kind of situation, it may be more interesting to see if these insiders have bought or sold.
General public property
The general public, with an 11% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
It’s always worth thinking about the different groups that own shares in a company. But to understand Autodesk better, there are many other factors that we need to consider. Note that Autodesk displays 1 warning sign in our investment analysis , you must know…
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better 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.
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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 documents. Simply Wall St has no position in the mentioned stocks.
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