What you need to know about the investor mix of the Progressive Corporation (NYSE: PGR)
Each investor in The Progressive Corporation (NYSE: PGR) must know the most powerful groups of shareholders. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. We also tend to see a decrease in the number of insiders in companies that were previously state-owned.
Progressive has a market cap of US $ 60 billion, so it’s too big to go unnoticed. We would expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Progressive.
What does institutional ownership tell us about the progressive?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Progressive has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Progressive’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. Progressive does not belong to hedge funds. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 8.2% of the shares outstanding. BlackRock, Inc. is the second largest shareholder holding 7.6% of the common shares, and Wellington Management Group LLP owns approximately 4.7% of the shares of the company.
A closer look at our ownership figures suggests that the top 24 shareholders have a combined 50% ownership, implying that no shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider ownership of Progressive
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data suggests that insiders own less than 1% of The Progressive Corporation in their own name. It’s a very large company, so it would be surprising to see insiders owning a large part of the company. Although their stake is less than 1%, we can see that the board members collectively own $ 189 million in stock (at current prices). Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders bought or sold.
General public property
The general public, who are generally individual investors, own 14% of the capital of Progressive. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. For example, we have identified 2 warning signs for Progressive that you need to be aware of.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.