United Utilities Group PLC (GB00B39J2M42)
 
 

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Stand (close): 03.07.25

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15.04.25 13:40:11 Is SJW Group (SJW) Stock Outpacing Its Utilities Peers This Year?
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Has SJW (SJW) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.

SJW is a member of our Utilities group, which includes 106 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. SJW is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SJW's full-year earnings has moved 0.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, SJW has returned 12.5% so far this year. At the same time, Utilities stocks have gained an average of 4.4%. As we can see, SJW is performing better than its sector in the calendar year.

Another Utilities stock, which has outperformed the sector so far this year, is United Utilities Group PLC (UUGRY). The stock has returned 7.5% year-to-date.

In United Utilities Group PLC's case, the consensus EPS estimate for the current year increased 24.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, SJW belongs to the Utility - Water Supply industry, which includes 12 individual stocks and currently sits at #85 in the Zacks Industry Rank. This group has gained an average of 17.3% so far this year, so SJW is slightly underperforming its industry in this area.

United Utilities Group PLC, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #50. The industry has moved +5.2% so far this year.

Investors with an interest in Utilities stocks should continue to track SJW and United Utilities Group PLC. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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01.04.25 10:18:00 Southern Company Enhances Security With OneLayer's Bridge Platform
The Southern Company’s SO subsidiary, Southern Linc, has taken a significant step in enhancing the security and management of its CriticalLinc LTE network by partnering with OneLayer, a leader in private LTE/5G OT management and Zero Trust security. Through this partnership, the company aims to optimize network efficiency and security at scale by leveraging OneLayer’s Bridge Platform.

An Insight Into SO’s CriticalLinc LTE Network

Southern Linc’s CriticalLinc LTE network is built on Ericsson’s core network technology that spans 122,000 square miles. The network supports essential utility and commercial operations across a wide variety of devices and applications. The company’s services include electric grid control and monitoring devices, cellular routers, smartphones, hotspots, laptops, sensors and many more. With the increasing demand for network access, Southern Linc recognized the need for a robust security and management solution. Therefore, OneLayer’s Bridge platform emerged as the ideal choice.

How Will OneLayer’s Bridge Platform Help Southern Linc?

OneLayer’s Bridge platform offers high-accuracy device fingerprinting, correlating device identities across IP and cellular networks and providing real-time detection of hidden devices, and an all-inclusive asset management solution.

The company’s Bridge platform will provide Southern Linc with complete control over all connected devices. The solution enables efficient profiling, classification and monitoring of network assets, ensuring seamless device communication. With these facilities, Southern Linc can better manage its expanding network in an efficient manner while maintaining the high level of security required for critical utility operations.

Advancing Digital Transformation in Utilities

Apart from providing enhanced security, OneLayer’s partnership with Southern Linc supports the utilities’ broader goals in their digital transformation journey. Its efficiency in providing services like network segmentation, policy enforcement and rapid threat response enables utility providers to operate securely and efficiently in an increasingly connected world.

SO’s Zacks Rank and Key Picks

The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately 9 million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).

Investors interested in the utility sector might look at some better-ranked stocks like EDP, S.A. EDPFY, United Utilities Group PLC UUGRY and CMS Energy Corporation CMS. While EDP and United Utilities currently sport a Zacks Rank #1 (Strong Buy) each, CMS Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Story Continues

EDP ranks among Europe's major electricity operators. It is one of Portugal's largest business groups.

United Utilities was created from the merger of North West Water and Norweb in November 1995, and its principal activities are managing and operating the regulated electricity distribution, water and wastewater networks in northwest England. The Zacks Consensus Estimate for UUGRY's 2025 earnings indicates 92.86% year-over-year growth.

Jackson, MI-based CMS Energy is the parent holding company of Consumers, an electric and gas utility, and NorthStar Clean Energy, a primarily domestic independent power producer and marketer. The Zacks Consensus Estimate for CMS' 2025 earnings indicates 7.78% year-over-year growth.

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Southern Company (The) (SO) : Free Stock Analysis Report

CMS Energy Corporation (CMS) : Free Stock Analysis Report

Energias de Portugal (EDPFY) : Free Stock Analysis Report

United Utilities Group PLC (UUGRY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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26.03.25 09:30:00 Southern Company & EPRI Join Forces to Fast-Track Energy Innovation
The Southern Company SO and the Electric Power Research Institute (EPRI) have recently joined forces to launch the Emerging Technologies Pilot (ETP) Program to provide innovative solutions in the energy sector that are both efficient and sustainable. This initiative aims to bridge the gap between cutting-edge startups and the energy industry, ensuring that promising new technologies are swiftly validated and integrated.

This collaboration will make use of Southern Company's expertise in delivering energy to homes and businesses while drawing on EPRI's experience in linking startups with energy providers through its Incubatenergy Labs program.

SO’s ETP Program to Accelerate Innovation

Many corporations struggle with the complications of implementing new products or services and want to speed up the time it takes to gain value from new technologies. Speeding up this time-consuming procedure to gain more value will create a structured environment where startups can showcase their solutions, undergo rigorous testing and gain traction in the energy market. The collaboration will address this speed-up process by streamlining pilot selection, enhancing resource utilization and reducing risk.

Under this program, Southern Company will pinpoint key strategic and operational needs, while EPRI will leverage its vast network and technical expertise to connect with companies offering technologies that will align with their goals. Using EPRI's research and insights, Southern Company will identify and advance the most promising concepts for future development.

A Future of Reliable, Affordable and Resilient Energy

With the ETP Program, Southern Company aims to stay at the forefront of energy innovation, ensuring its customers benefit from cleaner and more efficient power solutions. EPRI’s commitment to research and rapid deployment aligns perfectly with this mission, fostering a collaborative approach that benefits the entire industry. This partnership represents a major step toward a future where emerging technologies seamlessly integrate into the energy landscape, delivering reliability and affordability to all.

SO’s Zacks Rank and Key Picks

The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately nine million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).

Investors interested in the utility sector might look at some better-ranked stocks like EDP, S.A. EDPFY, United Utilities Group PLC UUGRY and Ameren Corporation AEE. While EDP and United Utilities currently sport a Zacks Rank #1 (Strong Buy) each, Ameren carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Story Continues

EDP ranks among Europe's major electricity operators, as well as being one of Portugal's largest business groups.

United Utilities was created from the merger of North West Water and Norweb in November 1995, and its principal activities are managing and operating the regulated electricity distribution, water and wastewater networks in northwest England. The Zacks Consensus Estimate for UUGRY's 2025 earnings indicates 92.86% year-over-year growth.

Ameren Corporationis a utility company that generates and distributes electricity and natural gas in Missouri and Illinois. The Zacks Consensus Estimate for AEE's 2024 earnings indicates 6.70% year-over-year growth.

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Ameren Corporation (AEE) : Free Stock Analysis Report

Southern Company (The) (SO) : Free Stock Analysis Report

Energias de Portugal (EDPFY) : Free Stock Analysis Report

United Utilities Group PLC (UUGRY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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19.03.25 16:00:08 United Utilities Group (UUGRY) Upgraded to Strong Buy: Here's Why
United Utilities Group PLC (UUGRY) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for United Utilities Group is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For United Utilities Group, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.

Story Continues

Earnings Estimate Revisions for United Utilities Group

For the fiscal year ending March 2025, this company is expected to earn $1.62 per share, which is a change of 92.9% from the year-ago reported number.

Analysts have been steadily raising their estimates for United Utilities Group. Over the past three months, the Zacks Consensus Estimate for the company has increased 21%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of United Utilities Group to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

United Utilities Group PLC (UUGRY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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26.02.25 12:24:43 Sewage overflows ‘not good enough’, boss of North West water supplier says
The water firm behind historic sewage spills in the UK’s Lake Windermere has said issues cannot be fixed “instantly”, as heavy rainfall and storms in the North West of England have driven more flooding incidents.

The chief executive of United Utilities also said she was “alive to the issues of trust and transparency” in the water sector after receiving a £1.4 million pay packet last year.

United Utilities was the latest supplier to face questioning by a group of MPs on the Environment, Food and Rural Affairs Committee.

Last year, the company was accused of failing to report more than 100 million litres of untreated sewage that it illegally dumped into Windermere over a three-year period.

Chief executive Louise Beardmore said that the company needed to rebuild trust in the North West after the scandal, and following an increase in pollution incidents last year.

“It is heartbreaking… I am very clear about the need to improve in this area,” she told the committee.

“It is not something we’re going to be able to fix instantly.

“It is a serious of infrastructure programmes… and at the same time, we’re going to have to look more long term about how we react to the impacts of climate change, particularly in some of the hot-spots in the North West.”

Ms Beardmore added: “Our performance isn’t good enough… we have one of the highest rates of internal sewer flooding across the country.”

This is partly due to a higher level of rainfall in the region last year leading to more major storms and flash flooding, and a greater number of power cuts.

She said the company had “fast-tracked” a programme to rebuild all of the wastewater treatment works around Lake Windermere and improve the water quality.

United Utilities is set to increase consumer bills by 32% over the coming five years, which will help pay for a £13.7 billion investment plan in the wider region between 2025 and 2030.

The boss took home a pay packet of £1.4 million last year, made up of a base salary worth £690,000, plus benefits, bonuses and long-term share awards.

Asked by MPs to justify the bonuses, Ms Beardmore said: “Shareholders are entirely paying for that so it’s not passed onto customers int terms of customer bills.”

“I think we’re all very alive to the issue of remuneration and trust in the sector and the changes that need to follow,” she added.

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26.02.25 06:05:31 United Utilities Group (LON:UU.) shareholders have earned a 1.0% CAGR over the last three years
As an investor its worth striving to ensure your overall portfolio beats the market average. But if you try your hand at stock picking, you risk returning less than the market. We regret to report that long term United Utilities Group PLC (LON:UU.) shareholders have had that experience, with the share price dropping 10% in three years, versus a market return of about 21%. It's down 14% in about a quarter.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for United Utilities Group

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During five years of share price growth, United Utilities Group moved from a loss to profitability. We would usually expect to see the share price rise as a result. So it's worth looking at other metrics to try to understand the share price move.

Given the healthiness of the dividend payments, we doubt that they've concerned the market. Revenue has been pretty flat over three years, so that isn't an obvious reason shareholders would sell. So it might be worth looking at how revenue growth over time, in greater detail.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).LSE:UU. Earnings and Revenue Growth February 26th 2025

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this freereport showing consensus forecasts

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, United Utilities Group's TSR for the last 3 years was 3.1%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

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A Different Perspective

Investors in United Utilities Group had a tough year, with a total loss of 0.9% (including dividends), against a market gain of about 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with United Utilities Group , and understanding them should be part of your investment process.

For those who like to find winning investments this freelist of undervalued companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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29.01.25 08:10:22 United Utilities and South West Water hike dividends amid bill increases
Water companies United Utilities and South West Water have said they will raise dividends to shareholders as they confirmed consumer bill increases of 32% and 23%, respectively, over the coming five years.

United Utilities, which serves about seven million customers around Manchester and Liverpool, and South West Water’s parent company Pennon said they had agreed the bill increases negotiated with regulator Ofwat last year.

The regulator’s decision, made in December, means the typical billpayer across the UK will see their payments rise by an average of £86 this April and was met with outrage from consumer groups.

The increases come amid high levels of sewage spills and underinvestment in pipes, sewers and reservoirs over the last decade.

The companies have said they need to increase bills to pay for improvements to their infrastructure to reduce pollution incidents.

Despite this, United Utilities and Pennon also said they will raise dividend payouts to shareholders this year so that they increase in line with inflation.

United Utilities’ boss Louise Beardmore said the rise in bills would raise £13 billion to invest in its infrastructure across the North West.

She said the total was the “largest investment in water and wastewater infrastructure in over 100 years”.

Pennon, meanwhile, whose companies serve about 1.8 million customers, said it will tap investors for £490 million via a sale of new shares.

It said the money will go towards a £3.2 billion investment in its pipes and sewers over the coming years.

The group’s chief executive Susan Davy said the company has “listened to customers” and that the bill rises would pay for “record levels of investment”.

She said the money would go towards “fixing storm overflows, building new reservoirs and creating natural habitats for wildlife”.

The smaller SES Water, which Pennon also bought last year and serves Surrey, Sussex and Kent, will reduce bills by 3% over the five-year period.

The companies had the option of appealing Ofwat’s decision on bills to the competition regulator, but the announcements on Wednesday signal they will not.

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29.01.25 05:37:51 United Utilities Group (LON:UU.) Has Some Difficulty Using Its Capital Effectively
When researching a stock for investment, what can tell us that the company is in decline? More often than not, we'll see a declining return on capital employed (ROCE) and a declining amount of capital employed. Trends like this ultimately mean the business is reducing its investments and also earning less on what it has invested. In light of that, from a first glance at United Utilities Group (LON:UU.), we've spotted some signs that it could be struggling, so let's investigate.

Return On Capital Employed (ROCE): What Is It?

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on United Utilities Group is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.038 = UK£580m ÷ (UK£16b - UK£1.3b) (Based on the trailing twelve months to September 2024).

Therefore, United Utilities Group has an ROCE of 3.8%. On its own that's a low return, but compared to the average of 3.1% generated by the Water Utilities industry, it's much better.

Check out our latest analysis for United Utilities Group LSE:UU. Return on Capital Employed January 29th 2025

Above you can see how the current ROCE for United Utilities Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for United Utilities Group .

What The Trend Of ROCE Can Tell Us

We are a bit worried about the trend of returns on capital at United Utilities Group. About five years ago, returns on capital were 5.5%, however they're now substantially lower than that as we saw above. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on United Utilities Group becoming one if things continue as they have.

The Bottom Line

In the end, the trend of lower returns on the same amount of capital isn't typically an indication that we're looking at a growth stock. Despite the concerning underlying trends, the stock has actually gained 23% over the last five years, so it might be that the investors are expecting the trends to reverse. Regardless, we don't like the trends as they are and if they persist, we think you might find better investments elsewhere.

Story Continues

United Utilities Group does have some risks though, and we've spotted 2 warning signs for United Utilities Group that you might be interested in.

For those who like to invest in solid companies, check out this freelist of companies with solid balance sheets and high returns on equity.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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21.01.25 11:45:04 United Utilities price target lowered to 1,150 GBp from 1,200 GBp at Deutsche Bank
https://www.tipranks.com/news/the-fly/united-utilities-price-target-lowered-to-1150-gbp-from-1200-gbp-at-deutsche-bank

Deutsche Bank analyst James Brand lowered the firm’s price target on United Utilities (UUGRY) to 1,150 GBp from 1,200 GBp and keeps a Buy rating on the shares. Having called time on the rally in October, the firm is upgrading its market relative view back to positive for the sector. European utilities trade at an exceptional discount, with thematic risks overestimated, Deutsche tells investors in a research note on Friday.

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Read More on UUGRY:

United Utilities price target lowered to 1,150 GBp from 1,175 GBp at JPMorgan United Utilities price target raised to 1,250 GBp from 1,200 GBp at Barclays United Utilities upgraded to Equal Weight from Underweight at Barclays United Utilities downgraded to Hold from Buy at Jefferies United Utilities (UUGRY) Announces Q1 Dividend: Save the Dates!

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29.12.24 07:24:16 United Utilities Group PLC (LON:UU.) is favoured by institutional owners who hold 84% of the company
Key Insights

Institutions' substantial holdings in United Utilities Group implies that they have significant influence over the company's share price A total of 13 investors have a majority stake in the company with 51% ownership Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in United Utilities Group PLC (LON:UU.) should be aware of the most powerful shareholder groups. With 84% stake, institutions possess the maximum shares in the company. 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. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of United Utilities Group, beginning with the chart below.

Check out our latest analysis for United Utilities Group LSE:UU. Ownership Breakdown December 29th 2024

What Does The Institutional Ownership Tell Us About United Utilities Group?

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.

United Utilities Group 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. 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 United Utilities Group's historic earnings and revenue below, but keep in mind there's always more to the story.LSE:UU. Earnings and Revenue Growth December 29th 2024

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in United Utilities Group. BlackRock, Inc. is currently the company's largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.8% and 5.2% of the stock.

After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of United Utilities Group

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 data suggests that insiders own under 1% of United Utilities Group PLC in their own names. 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 UK£2.1m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that United Utilities Group is showing 2 warning signs in our investment analysis, you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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