The high level of institutional ownership suggests that Truist Financial’s stock is significantly influenced by their trading activities
The top 10 shareholders collectively own 50% of the company
Ownership data and analyst predictions provide a clear insight into a company’s future potential
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To understand who truly governs Truist Financial Corporation (NYSE:TFC), it’s vital to analyze its ownership structure. A significant portion, approximately 86%, is held by institutional investors, indicating they stand to gain the most from any stock appreciation (or suffer the most in the event of a decline).
Institutions often wield large capital pools, and their market activities tend to attract considerable attention from retail investors. Thus, substantial institutional investment is generally seen as a positive signal.
Let’s delve deeper to understand what the various shareholder types reveal about Truist Financial.
Explore our recent analysis for Truist Financial
NYSE:TFC Ownership Breakdown as of April 12th, 2025
Institutional investors typically benchmark their returns against a well-known index, usually leading them to favor large companies included in that index.
Truist Financial is part of the institutional share registry, with these investors holding a solid stake in the company. This suggests that analysts associated with these institutions are optimistic about the stock. However, like any investor, they could also be mistaken. If multiple institutions simultaneously change their opinions about a stock, it can lead to a rapid decline in share price. Thus, examining Truist Financial’s earnings history is crucial. Yet, the future is what ultimately matters.
NYSE:TFC Earnings and Revenue Growth as of April 12th, 2025
With institutional investors possessing over 50% of the outstanding shares, Truist Financial’s board will likely be attentive to their interests. Notably, the company is not owned by hedge funds. According to our data, American Century Investment Management Inc is the largest shareholder, owning 11% of shares, followed by The Vanguard Group, Inc. with 9.1%, and BlackRock, Inc. which holds about 8.0% of the stock.
Additionally, the top 10 shareholders collectively account for more than half of the share registry, which helps balance the interests of smaller shareholders to some extent.
Exploring institutional ownership can effectively gauge and filter a stock’s anticipated performance. Additionally, looking into analyst sentiments may provide further insights. Numerous analysts follow the stock, making it worthwhile to consider their forecasts as well.
The definition of an “insider” may vary by country, but board members are always considered insiders. The management ultimately reports to the board, though it’s common for managers to also hold board positions, particularly if they are the founder or CEO.
Insider ownership is generally viewed as favorable, suggesting the board is aligned with shareholders. However, excessive concentration of power within this group can be a concern.
Our data indicates that insiders hold less than 1% of Truist Financial Corporation’s stock. Given the company’s large size, it’s not surprising to see a minimal insider holding. Though under 1%, the combined total of board member holdings is valued at approximately US$73 million (at current market prices). It’s beneficial to see some level of insider ownership, but it’s prudent to check if any insiders have been selling their shares.
With 13% of shares held, the general public, primarily individual investors, have some influence over Truist Financial’s operations. While they may not have decision-making authority, their presence can certainly affect how the company is managed.
While considering the various ownership groups is important, other factors may hold greater significance. For instance, it’s crucial to recognize the ever-present risk of investment. We’ve identified 1 warning sign associated with Truist Financial, and understanding this should be a part of your investment evaluation.
Ultimately, the future is what will determine the outcomes for the owners of this business. Therefore, we recommend reviewing this free report that outlines whether analysts are optimistic about what lies ahead.
Note: The figures presented in this article are derived from data spanning the last twelve months, corresponding to the 12-month period ending on the last day of the month indicated on the financial statements. This may not align with full-year annual report figures.
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This article is produced by Simply Wall St and is of a general nature. Our analysis is based solely on historical data and analyst forecasts with an unbiased methodology and should not be considered financial advice. This does not serve as a recommendation to purchase or sell any stock and does not take into account your objectives or financial situation. We aim to provide long-term focused analyses driven by fundamental data. Please note that our analysis may not consider the latest price-sensitive company announcements or qualitative information. Simply Wall St does not hold positions in any of the stocks mentioned.
