Key Insights

Institutions' substantial holdings in NewMarket implies that they have significant influence over the company's share price A total of 8 investors have a majority stake in the company with 51% ownership Insiders own 17% of NewMarket

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Every investor in NewMarket Corporation (NYSE:NEU) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 65% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

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.

In the chart below, we zoom in on the different ownership groups of NewMarket.

Check out our latest analysis for NewMarket NYSE:NEU Ownership Breakdown April 23rd 2025

What Does The Institutional Ownership Tell Us About NewMarket?

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.

NewMarket 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. 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 NewMarket, (below). Of course, keep in mind that there are other factors to consider, too.NYSE:NEU Earnings and Revenue Growth April 23rd 2025

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. NewMarket is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Bank of America Corporation, Asset Management Arm with 11% of shares outstanding. With 10% and 7.7% of the shares outstanding respectively, Bruce Gottwald and The Vanguard Group, Inc. are the second and third largest shareholders. In addition, we found that Thomas Gottwald, the CEO has 4.4% of the shares allocated to their name.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Story Continues

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of NewMarket

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders maintain a significant holding in NewMarket Corporation. Insiders own US$908m worth of shares in the US$5.3b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in NewMarket. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - NewMarket has  1 warning sign  we think you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this freefree list of interesting companies.

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.

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