WEBULL

With 87% institutional ownership, Truist Financial Corporation (NYSE:TFC) is a favorite amongst the big guns

Simply Wall St · 05/30 17:39

Key Insights

  • Institutions' substantial holdings in Truist Financial implies that they have significant influence over the company's share price
  • 50% of the business is held by the top 10 shareholders
  • Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls Truist Financial Corporation (NYSE:TFC), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 87% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

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

Check out our latest analysis for Truist Financial

ownership-breakdown
NYSE:TFC Ownership Breakdown May 30th 2025

What Does The Institutional Ownership Tell Us About Truist Financial?

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.

Truist Financial already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Truist Financial's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:TFC Earnings and Revenue Growth May 30th 2025

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Truist Financial. Looking at our data, we can see that the largest shareholder is American Century Investment Management Inc with 11% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 9.1% of common stock, and Capital Research and Management Company holds about 8.2% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Truist Financial

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own less than 1% of Truist Financial Corporation. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$81m worth of shares. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Truist Financial. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Truist Financial better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Truist Financial , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.