Charles Schwab Corporation (NYSE:SCHW) is a favorite among institutional investors, owning 72%.

Charles Schwab Corporation (NYSE:SCHW) is a favorite among institutional investors, owning 72%.

  • Institutions’ significant holdings in Charles Schwab imply that they have significant influence over the company’s stock price

  • A total of 16 investors have a 50% majority stake in the company

  • Insiders have been selling recently

Every investor in Charles Schwab Corporation (NYSE:SCHW) should know the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions, with 72% ownership. In other words, the group will gain the most (or lose the most) from its investment in the company.

Institutional ownership tends to have a lot of importance, especially among individual investors, given the enormous amount of money and research capacity at their disposal. Therefore, a large portion of institutional money invested in the company is usually a great vote of confidence in its future.

Let’s dive deeper into each of Charles Schwab’s ownership types, starting with the table below.

Check out our latest analysis for Charles Schwab

Property Collapse
NYSE:SCHW Ownership Breakdown December 27, 2024

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

As you can see, institutional investors have a significant stake in Charles Schwab. This can be an indication that the company has a certain level of credibility in the investment community. However, one should be careful not to rely on the supposed validation of institutional investors. They also sometimes do things wrong. 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’s worth taking a look at Charles Schwab’s past earnings performance (below). Of course, keep in mind that there are other factors to consider as well.

Profit and sales growth
NYSE:SCHW Earnings and Revenue Growth, December 27, 2024

Investors should note that institutions actually own more than half of the company, so collectively they can wield significant power. We find that hedge funds are not making a meaningful investment in Charles Schwab. Our data shows that Toronto-Dominion Bank is the largest shareholder with 10% of shares outstanding. The second and third largest shareholders now hold 7.0% and 5.7% of the shares issued.

A closer look at our ownership suggests that the top 16 shareholders collectively hold a 50% stake, meaning no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are a fair number of analysts covering the stock, so it might be useful to find out their overall view going forward.

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