Institutional investors hold a substantial stake in Bristol-Myers Squibb Company (NYSE:BMY), with the top 25 shareholders collectively owning 49% of the company, according to data released on Thursday. This significant institutional ownership, which comprises 78% of the company's shares, adds complexity to the ownership dynamics and also poses a 'crowded trade' risk.
The Vanguard Group, Inc., BlackRock (NYSE:BLK), Inc., and State Street (NYSE:STT) Global Advisors, Inc. are among the key shareholders in Bristol-Myers Squibb. These major players highlight the dominant role of institutional investors in the company's shareholding structure. According to InvestingPro data, Bristol-Myers Squibb has a market cap of 117.09B USD, and its P/E ratio stands at 14.9, suggesting that the company is trading at a low P/E ratio relative to near-term earnings growth.
The general public also holds a significant stake in Bristol-Myers Squibb, accounting for 22% of the company's shares. This substantial public ownership underscores the broad interest and investment in the company from individual investors. As per InvestingPro Tips, the company has high earnings quality, with free cash flow exceeding net income, and management has been aggressively buying back shares, indicating a strong confidence in the company's prospects.
The recent insider selling activity at Bristol-Myers Squibb further adds to the complex ownership dynamics. While details about this activity have not been disclosed, it is an important factor to consider given its potential impact on shareholder confidence and stock price performance. The company's free cash flow yield is strong, as suggested by an InvestingPro Tip, which might provide some assurance to investors.
This diverse shareholding structure lends credibility to Bristol-Myers Squibb but also presents potential risks. The high level of institutional ownership could lead to a 'crowded trade' scenario, where many investors may decide to sell their shares at the same time, potentially causing a sharp drop in the stock price. Despite the company's stock trading near its 52-week low, InvestingPro data reveals that Bristol-Myers Squibb has maintained dividend payments for 53 consecutive years, which might offer some level of comfort to investors during volatile times.
The shareholding structure of Bristol-Myers Squibb presents a complex landscape of institutional, public, and insider ownership. As such, investors are advised to understand these dynamics when considering their investment decisions in the company. For more insights, investors might want to check out InvestingPro, which offers a wealth of additional tips and real-time metrics for companies like Bristol-Myers Squibb. You can find more information at InvestingPro.
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