GE HealthCare Technologies Inc. (NASDAQ:GEHC) is favoured by institutional owners who hold 77% of the company

GE HealthCare Technologies Inc. (NASDAQ:GEHC) is favoured by institutional owners who hold 77% of the company

  • Given the large stake in the stock by institutions, GE HealthCare Technologies’ stock price might be vulnerable to their trading decisions

  • The top 11 shareholders own 51% of the company

  • Recent sales by insiders

A look at the shareholders of GE HealthCare Technologies Inc. (NASDAQ:GEHC) can tell us which group is most powerful. The group holding the most number of shares in the company, around 77% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let’s take a closer look to see what the different types of shareholders can tell us about GE HealthCare Technologies.

See our latest analysis for GE HealthCare Technologies

ownership-breakdown
ownership-breakdown

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.

We can see that GE HealthCare Technologies does have institutional investors; and they hold a good portion of the company’s stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 GE HealthCare Technologies’ earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. GE HealthCare Technologies is not owned by hedge funds. Our data shows that Capital Research and Management Company is the largest shareholder with 12% of shares outstanding. With 11% and 7.9% of the shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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