Private companies who hold 47% of Schneider National, Inc. (NYSE:SNDR) gained 3.4%, institutions profited as well

Schneider National, Inc. Class B -0.46%

Schneider National, Inc. Class B

SNDR

21.62

-0.46%

Key Insights

  • Significant control over Schneider National by private companies implies that the general public has more power to influence management and governance-related decisions
  • A total of 2 investors have a majority stake in the company with 51% ownership
  • Insider ownership in Schneider National is 14%

If you want to know who really controls Schneider National, Inc. (NYSE:SNDR), then you'll have to look at the makeup of its share registry. With 47% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 3.4% increase in the stock price last week, private companies profited the most, but institutions who own 29% stock also stood to gain from the increase.

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

Check out our latest analysis for Schneider National

ownership-breakdown
NYSE:SNDR Ownership Breakdown March 30th 2024

What Does The Institutional Ownership Tell Us About Schneider National?

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.

We can see that Schneider National does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Schneider National's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:SNDR Earnings and Revenue Growth March 30th 2024

Hedge funds don't have many shares in Schneider National. Schneider National, Inc. Voting Trust is currently the company's largest shareholder with 47% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.3% and 2.8% of the stock. Therese Koller, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Schneider National

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Schneider National, Inc.. Insiders own US$544m worth of shares in the US$4.0b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Schneider National. 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.

Private Company Ownership

We can see that Private Companies own 47%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Schneider National , and understanding them should be part of your investment process.

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.

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.

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