A look at the shareholders of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) can tell us which group is most powerful. With 79% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And institutional investors saw their holdings value drop by 4.7% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 10.0% might not go down well especially with this category of shareholders. Often called “market movers”, institutions wield significant power in influencing the price dynamics of any stock. Hence, if weakness in Old Dominion Freight Line’s share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors.
In the chart below, we zoom in on the different ownership groups of Old Dominion Freight Line.
NasdaqGS:ODFL Ownership Breakdown February 3rd 2025
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.
We can see that Old Dominion Freight Line does have institutional investors; and they hold a good portion of the company’s stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Old Dominion Freight Line, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGS:ODFL Earnings and Revenue Growth February 3rd 2025
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Old Dominion Freight Line is not owned by hedge funds. The Vanguard Group, Inc. is currently the company’s largest shareholder with 10% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.6% and 7.8%, of the shares outstanding, respectively.
After doing some more digging, we found that the top 11 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Old Dominion Freight Line, Inc.. It has a market capitalization of just US$40b, and insiders have US$4.2b worth of shares in their own names. That’s quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Old Dominion Freight Line. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
It’s always worth thinking about the different groups who own shares in a company. But to understand Old Dominion Freight Line better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we’ve spotted 1 warning sign for Old Dominion Freight Line you should know about.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
