UK markets closed
  • FTSE 100

    7,043.61
    +80.28 (+1.15%)
     
  • FTSE 250

    22,336.10
    +266.79 (+1.21%)
     
  • AIM

    1,236.38
    +11.54 (+0.94%)
     
  • GBP/EUR

    1.1602
    -0.0025 (-0.21%)
     
  • GBP/USD

    1.4102
    +0.0050 (+0.36%)
     
  • BTC-GBP

    34,928.08
    -179.00 (-0.51%)
     
  • CMC Crypto 200

    1,398.33
    +39.77 (+2.93%)
     
  • S&P 500

    4,173.85
    +61.35 (+1.49%)
     
  • DOW

    34,382.13
    +360.68 (+1.06%)
     
  • CRUDE OIL

    65.51
    +1.69 (+2.65%)
     
  • GOLD FUTURES

    1,844.00
    +20.00 (+1.10%)
     
  • NIKKEI 225

    28,084.47
    +636.46 (+2.32%)
     
  • HANG SENG

    28,027.57
    +308.90 (+1.11%)
     
  • DAX

    15,416.64
    +216.96 (+1.43%)
     
  • CAC 40

    6,385.14
    +96.81 (+1.54%)
     

How Many 3M Company (NYSE:MMM) Shares Do Institutions Own?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·4-min read
  • Oops!
    Something went wrong.
    Please try again later.

The big shareholder groups in 3M Company (NYSE:MMM) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$110b, 3M is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about 3M.

Check out our latest analysis for 3M

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About 3M?

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.

As you can see, institutional investors have a fair amount of stake in 3M. 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 3M, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. 3M is not owned by hedge funds. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 7.8% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.1% and 5.2% of the stock.

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.

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 3M

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 3M Company in their own names. 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$76m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public holds a 33% stake in 3M. 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 3M better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with 3M , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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 editorial-team (at) simplywallst.com.