How many CVS Health Corporation (NYSE: CVS) shares do institutions own?

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A look at the shareholders of CVS Health Corporation (NYSE: CVS) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that were previously state-owned tend to have fewer insiders.

With a market cap of US $ 109 billion, CVS Health 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. Let’s dig deeper into each type of owner to learn more about CVS Health.

See our latest analysis for CVS Health

NYSE: Distribution of CVS ownership July 3, 2021

What does institutional ownership tell us about CVS Health?

Institutional investors typically 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.

CVS Health already has establishments on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the title and appreciate it. But like everyone else, they could be wrong. 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 CVS Health’s earnings history below. Of course, the future is what really matters.

profit and revenue growth
NYSE: CVS Profits and Revenue Growth July 3, 2021

Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. CVS Health is not owned by hedge funds. The Vanguard Group, Inc. is currently the largest shareholder, with 8.1% of the shares outstanding. For context, the second largest shareholder owns around 7.2% of the outstanding shares, followed by a 4.2% stake by the third largest shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the shares of the company, which means that the shares of the company are widely disseminated and there is no dominant shareholder.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a lot of analysts covering the stock, so you can look at the expected growth quite easily.

CVS Health Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

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 CVS Health Corporation insiders 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 $ 213 million in shares (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 a 23% stake in the company, will not be easily ignored. 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.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider risks, for example. Every business has them, and we’ve spotted 1 warning sign for CVS Health you should know.

Ultimately 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 from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of the date of the financial declaration. 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. 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 any of the stocks mentioned.
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