Institutional investors in Brookfield Corporation (TSE:BN) lost 7.7% last week but have reaped the benefits of longer-term growth

In This Article:

Key Insights

  • Institutions' substantial holdings in Brookfield implies that they have significant influence over the company's share price

  • A total of 25 investors have a majority stake in the company with 45% ownership

  • Recent sales by insiders

A look at the shareholders of Brookfield Corporation (TSE:BN) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 7.7% in value last week. However, the 35% one-year returns may have helped alleviate their overall losses. But they would probably be wary of future losses.

In the chart below, we zoom in on the different ownership groups of Brookfield.

Check out our latest analysis for Brookfield

ownership-breakdown
TSX:BN Ownership Breakdown September 8th 2024

What Does The Institutional Ownership Tell Us About Brookfield?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Brookfield. 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 Brookfield's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSX:BN Earnings and Revenue Growth September 8th 2024

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Brookfield. Our data shows that Principal Global Investors, LLC is the largest shareholder with 3.9% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 3.8% of common stock, and Capital Research and Management Company holds about 3.6% of the company stock. Furthermore, CEO James Flatt is the owner of 3.6% of the company's shares.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.