could-the-exxon-mobil-corporation-(nyse:xom)-ownership-structure-tell-us-something-useful?

Could The Exxon Mobil Corporation (NYSE:XOM) Ownership Structure Tell Us Something Useful?

NYSE:XOM) 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. Companies that used to be publicly owned tend to have lower insider ownership.” data-reactid=”28″ type=”text”>Every investor in Exxon Mobil Corporation (NYSE:XOM) 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. Companies that used to be publicly owned tend to have lower insider ownership.

Exxon Mobil has a market capitalization of US$175b, 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. In the chart below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholders can tell us about Exxon Mobil.

Check out our latest analysis for Exxon Mobil ” data-reactid=”30″ type=”text”> Check out our latest analysis for Exxon Mobil

ownership-breakdown

What Does The Institutional Ownership Tell Us About Exxon Mobil?

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.

Exxon Mobil already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Exxon Mobil, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don’t have many shares in Exxon Mobil. The Vanguard Group, Inc. is currently the largest shareholder, with 8.6% of shares outstanding. With 6.7% and 5.2% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders.

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

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 reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Exxon Mobil

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.

click here to see if insiders have been buying or selling. ” data-reactid=”72″ type=”text”>Our information suggests that Exxon Mobil Corporation insiders own under 1% of the company. As it is a large company, we’d only expect insiders to own a small percentage of it. But it’s worth noting that they own US$261m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public have some degree of sway over Exxon Mobil. 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:

4 warning signs for Exxon Mobil (1 is a bit concerning!) that you should be aware of before investing here.” data-reactid=”76″ type=”text”>While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we’ve discovered 4 warning signs for Exxon Mobil (1 is a bit concerning!) that you should be aware of before investing here.

this free report showing analyst forecasts for its future.” data-reactid=”77″ type=”text”>If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”79″ type=”text”>

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top