Stock Analysis

What Kind Of Shareholders Hold The Majority In Popular, Inc.'s (NASDAQ:BPOP) Shares?

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NasdaqGS:BPOP
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Every investor in Popular, Inc. (NASDAQ:BPOP) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.

Popular has a market capitalization of US$5.7b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Popular.

Check out our latest analysis for Popular

ownership-breakdown
NasdaqGS:BPOP Ownership Breakdown March 4th 2021

What Does The Institutional Ownership Tell Us About Popular?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Popular already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Popular's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS:BPOP Earnings and Revenue Growth March 4th 2021

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Popular is not owned by hedge funds. The Vanguard Group, Inc. is currently the largest shareholder, with 9.3% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.3% and 4.8% of the stock.

After doing some more digging, we found that the top 14 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Popular

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Popular, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$95m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 11% ownership, the general public have some degree of sway over Popular. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Popular that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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