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Institutional investors hold sway over Abbott Laboratories stock

EditorAmbhini Aishwarya
Published 08/11/2023, 13:24
Updated 08/11/2023, 13:24
© Reuters.

Institutional investors continue to exercise significant influence over Abbott Laboratories (NYSE:ABT) due to their substantial ownership of approximately 76% of the company's shares, making the stock price notably sensitive to their trading actions. Analysts' approval of Abbott Laboratories' stock among these institutions indicates a positive outlook, though risks remain. A significant drop in share price could occur if two large institutional investors decided to simultaneously sell their stakes.

The Vanguard Group, Inc., as the largest shareholder with 9.0% of shares outstanding, holds considerable sway over board decisions due to its significant ownership. The top 25 shareholders collectively own less than half of the register, suggesting the presence of a large group of small holders and no majority shareholder.

Insiders at Abbott Laboratories own less than 1% of the company, amounting to $863 million of stock. Despite recent selling activities, this level of ownership could indicate that leadership views themselves as true owners of the company. However, this also carries the risk of power centralization within a small group.

The general public holds a 23% stake in Abbott Laboratories. This stake may not wield enough influence over company policy if it doesn't align with the decisions of other large shareholders. Institutions often measure their performance against a local market index, and their analysts' approval can sway the market sentiment toward Abbott Laboratories' stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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