Intuitional ownership Overview of Top Five Dow Jones Stocks – UNH, TRV, AXP, UTX, HPQ

  on Dec 26,2012 Posted in Finance ,Investment Ideas
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Intuitional ownership is the ownership of a firm’s stock by mutual funds, pension funds, and other institutional investors, usually expressed as a percentage of outstanding stock.

If institutional ownership owns high proportion of firm than it may result in relatively big changes in a security’s price, as institutions tend to purchase and sell the same stocks at the same time.

Instructional investors usually have much more knowledgeable than the average investor when it comes to the corporations and industries in which they have invested.

Managers of the institutional investors often meet personally with a firm’s top executives and in numerous cases the research they conduct is further supported by equity analysts, known as “buy side” analysts. In this article we will discuss top five stocks of Dow Jones Industrial Average with higher proportion of intuitional ownership.

Institutional ownership owns 88% stake in UnitedHealth Group Inc (NYSE:UNH). The company has the market capitalization of 56.03 billion while its 1.02 billion shares were outstanding. The Beta factor, which measures the riskiness of the stock, was 0.94. Net profit margin of the corporation was 5.14% while operating profit margin as 8.56%. Shares of the company were moving ahead of SMA 20 with 1.44% while SMA 50 with 0.72%.

The Travelers Companies, Inc (NYSE:TRV) has the market capitalization of 27.60 billion while its 381.45 million shares were outstanding. The financial company made $2.77 billion in earlier 12 month on sales of $25.64 billion. Net profit margin of company was 10.87% while operating profit margin was 14.17%. Shares of company were lagging behind its 20 days simple moving average with -0.08 while ahead of SMA 50 with 2.06. Intuitional investors own 85% stake in the company. TRV was offering 2.54% dividend yield.

American Express Company (NYSE:AXP) institutional ownership was 83% while inside ownership was 0.07%. The blue chip financial stock has the market capitalization of 64.38 billion. Its EPS was 4.32 while outstanding shares of the company were 1.12 billion. The Bank has net profit margin of 15.06% while operating profit margin was 21.74%.

United Technologies Corporation (NYSE:UTX) has the market capitalization of 75.38 billion while 916.54 million shares were outstanding. Beta factor, which is used to measure risk associated with the stock, was 1.04. Return on equity of the Hartford based company was booked as 21.99%. In the liquidity analysis, current ratio was booked as 1.20 while quick ratio was 0.80.

Hewlett-Packard Company (NYSE:HPQ), which has 27.55 billion market capitalization, was also among highly institutional owned stocks. Its institutional ownership of the world’s biggest personal computer maker was 79%. The company has P/B ratio of 1.23 while P/S ratio was 0.23. Net profit margin of Hewlett-Packard Company (NYSE:HPQ) was -10.51% while its gross profit margin was 23.02%. ROE was recorded as -41.43%.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.



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