Institutional investors have a lot riding on Eastman Kodak Company (NYSE:KODK) with 41% ownership

Key Insights

• Given the large stake in the stock by institutions, Eastman Kodak's stock price might be vulnerable to their trading decisions
• 51% of the business is held by the top 12 shareholders
• Insiders have been buying lately

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A look at the shareholders of Eastman Kodak Company (NYSE:KODK) can tell us which group is most powerful. The group holding the most number of shares in the company, around 41% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And as as result, institutional investors reaped the most rewards after the company's stock price gained 28% last week. One-year return to shareholders is currently 39% and last week’s gain was the icing on the cake.

Let's take a closer look to see what the different types of shareholders can tell us about Eastman Kodak.

Check out our latest analysis for Eastman Kodak

What Does The Institutional Ownership Tell Us About Eastman Kodak?

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.

Eastman Kodak already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Eastman Kodak, (below). Of course, keep in mind that there are other factors to consider, too.

Eastman Kodak is not owned by hedge funds. The company's largest shareholder is B. Golisano, with ownership of 16%. The Vanguard Group, Inc. is the second largest shareholder owning 5.7% of common stock, and BlackRock, Inc. holds about 5.1% of the company stock. In addition, we found that James Continenza, the CEO has 2.0% of the shares allocated to their name.

After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Eastman Kodak

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Eastman Kodak Company. Insiders own US$173m worth of shares in the US$751m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 33% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Eastman Kodak. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Eastman Kodak you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.