With 67% ownership, Texas Pacific Land Corporation (NYSE:TPL) boasts of strong institutional backing

In This Article:

Key Insights

  • Given the large stake in the stock by institutions, Texas Pacific Land's stock price might be vulnerable to their trading decisions

  • The top 17 shareholders own 50% of the company

  • Recent sales by insiders

If you want to know who really controls Texas Pacific Land Corporation (NYSE:TPL), then you'll have to look at the makeup of its share registry. With 67% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

Let's take a closer look to see what the different types of shareholders can tell us about Texas Pacific Land.

View our latest analysis for Texas Pacific Land

ownership-breakdown
NYSE:TPL Ownership Breakdown November 18th 2024

What Does The Institutional Ownership Tell Us About Texas Pacific Land?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Texas Pacific Land. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Texas Pacific Land's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NYSE:TPL Earnings and Revenue Growth November 18th 2024

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Texas Pacific Land. The company's largest shareholder is Horizon Kinetics Holding Corporation, with ownership of 16%. With 9.9% and 9.1% of the shares outstanding respectively, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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