Canada Markets open in 6 hrs 52 mins
  • S&P/TSX

    20,099.81
    +400.71 (+2.03%)
     
  • S&P 500

    4,023.89
    +93.81 (+2.39%)
     
  • DOW

    32,196.66
    +466.36 (+1.47%)
     
  • CAD/USD

    0.7720
    -0.0028 (-0.3551%)
     
  • CRUDE OIL

    109.16
    -1.33 (-1.20%)
     
  • BTC-CAD

    38,202.72
    -622.72 (-1.60%)
     
  • CMC Crypto 200

    662.14
    -18.97 (-2.79%)
     
  • GOLD FUTURES

    1,803.30
    -4.90 (-0.27%)
     
  • RUSSELL 2000

    1,792.67
    +53.29 (+3.06%)
     
  • 10-Yr Bond

    2.9350
    0.0000 (0.00%)
     
  • NASDAQ futures

    12,277.50
    -105.25 (-0.85%)
     
  • VOLATILITY

    28.87
    -2.90 (-9.13%)
     
  • FTSE

    7,418.15
    +184.81 (+2.55%)
     
  • NIKKEI 225

    26,547.05
    +119.40 (+0.45%)
     
  • CAD/EUR

    0.7415
    -0.0021 (-0.28%)
     

Do Institutions Own Service Corporation International (NYSE:SCI) Shares?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Every investor in Service Corporation International (NYSE:SCI) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.

Service Corporation International has a market capitalization of US$11b, 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 own shares in the company. Let's delve deeper into each type of owner, to discover more about Service Corporation International.

Check out our latest analysis for Service Corporation International

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Service Corporation International?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Service Corporation International. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Service Corporation International's historic earnings and revenue below, but keep in mind there's always more to the story.

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

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Service Corporation International. Looking at our data, we can see that the largest shareholder is Baillie Gifford & Co. with 11% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.8% and 9.5%, of the shares outstanding, respectively. Furthermore, CEO Thomas Ryan is the owner of 0.7% of the company's shares.

After doing some more digging, we found that the top 13 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Service Corporation International

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.

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.

Shareholders would probably be interested to learn that insiders own shares in Service Corporation International. It is a very large company, and board members collectively own US$246m worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Service Corporation International. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Service Corporation International you should be aware of, and 1 of them is significant.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting