With 65% institutional ownership, Duke Energy Corporation (NYSE:DUK) is a favorite amongst the big guns

Duke Energy Corporation -0.81% Pre

Duke Energy Corporation

DUK

94.13

94.13

-0.81%

0.00% Pre

Key Insights

  • Given the large stake in the stock by institutions, Duke Energy's stock price might be vulnerable to their trading decisions
  • The top 25 shareholders own 44% of the company
  • Recent sales by insiders

A look at the shareholders of Duke Energy Corporation (NYSE:DUK) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 65% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's take a closer look to see what the different types of shareholders can tell us about Duke Energy.

See our latest analysis for Duke Energy

ownership-breakdown
NYSE:DUK Ownership Breakdown December 30th 2023

What Does The Institutional Ownership Tell Us About Duke Energy?

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

Duke Energy already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Duke Energy, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NYSE:DUK Earnings and Revenue Growth December 30th 2023

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Duke Energy. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 9.1% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 7.6% of common stock, and State Street Global Advisors, Inc. holds about 5.3% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 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 Duke Energy

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 data suggests that insiders own under 1% of Duke Energy Corporation in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$85m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Duke Energy better, we need to consider many other factors. For instance, we've identified 2 warning signs for Duke Energy (1 is concerning) that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Every question you ask will be answered
Scan the QR code to contact us
whatsapp
Also you can contact us via