Safety Insurance Group, Inc. (NASDAQ:SAFT) is favoured by institutional owners who hold 84% of the company

Safety Insurance Group, Inc. (NASDAQ:SAFT) is favoured by institutional owners who hold 84% of the company

To get a sense of who is truly in control of Safety Insurance Group, Inc. (NASDAQ:SAFT), it is important to understand the ownership structure of the business. We can see that institutions own the lion’s share in the company with 84% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Safety Insurance Group.

View our latest analysis for Safety Insurance Group

NasdaqGS:SAFT Ownership Breakdown January 2nd 2025

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Safety Insurance Group does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Safety Insurance Group’s historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
NasdaqGS:SAFT Earnings and Revenue Growth January 2nd 2025

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don’t have a meaningful investment in Safety Insurance Group. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 11% of the stock. Additionally, the company’s CEO George Murphy directly holds 0.7% of the total shares outstanding.

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