Institutional Investors Hold 45% Stake in International Game Technology: What Does This Mean for the Company and Investors?

3 min read

When analysing a company such as International Game Technology PLC (NYSE: IGT), it is imperative to delve into the identities of the largest stakeholders in the company. Institutional investors currently possess a significant 45% stake in the company’s stock, which holds paramount relevance for both current and potential investors.

Institutional investors, comprising entities such as investment banks, pension funds, and mutual funds, allocate substantial amounts of capital on behalf of others. Given their considerable stake in International Game Technology, the decisions made by these institutional investors can significantly impact the company’s stock price. With the top 3 shareholders, including institutions, holding 52% of the business, it is evident that their trading decisions could profoundly influence the company’s stock performance.

It is pertinent to highlight that ownership data from these institutions, coupled with analyst forecasts, offer valuable insights into a business’s potential prospects. This combined insight equips investors with a clearer understanding of the company’s trajectory and anticipated future performance.

Clearly, a considerable percentage of stock held by institutional investors carries considerable weight, especially for individual investors. Institutional ownership is often perceived as an attractive characteristic as these entities possess substantial resources and research capabilities that can contribute to a company’s growth and success.

A thorough examination of the shareholder registry of International Game Technology demonstrates that the company’s largest shareholder is New B&D Holding di Marco Drago e C. S.a.p.a, with a 42% ownership stake. The second and third largest shareholders respectively hold approximately 5.3% and 4.3% of the outstanding shares. Furthermore, a deeper investigation reveals that 3 of the top shareholders have a combined 52% ownership stake in the company.

While understanding institutional ownership data is indispensable, it is also prudent to consider analyst sentiments and forecasts to gauge the company’s potential trajectory. International Game Technology has garnered considerable attention from analysts, making it worthwhile to take their forecasts into account.

In addition to institutional ownership, insider ownership is another critical aspect to consider. The fact that insiders own a meaningful stake worth US$48m in International Game Technology PLC is generally considered a positive sign, indicating a convergence of interests between shareholders and the board. This level of insider ownership can instill confidence in other shareholders and investors.

Even the broader public, predominantly comprising individual investors, holds an 11% ownership stake in the company. While their influence may not be as significant as that of institutional investors, it is noteworthy that they still wield some influence over the operation of the company.

Furthermore, private companies own 42% of the International Game Technology stock, which is another crucial factor to consider when evaluating the company’s ownership structure.

It is imperative to consider additional information alongside ownership data when assessing a potential investment. Examining factors such as historical data, analyst forecasts, and the company’s financial health can provide a more comprehensive understanding of its prospects, assisting investors in making well-informed decisions.

While the ownership structure of a company furnishes valuable insights, conducting thorough research and analysis is essential before making any investment decisions. Taking into account historical data, analyst forecasts, and fundamental information can aid investors in gaining a holistic understanding of a company’s potential.

In conclusion, comprehending the ownership structure of International Game Technology PLC can offer valuable insights for investors. By considering the influence of institutional and insider ownership, alongside analyst forecasts and financial health, investors can acquire a deeper understanding of the company’s prospects and make informed investment decisions.