Institutional investors have taken a substantial position in Philip Morris International Inc. (NYSE:PM), controlling an 81% stake in the company, as of Friday. This significant shareholding exposes them to both potential upside and downside risks, which can greatly influence the firm's share price. According to InvestingPro, Philip Morris International has a market cap of 143.25B USD and operates with a high return on assets at 16.53%.
These institutional investors, who frequently benchmark their performance and show strong interest in stocks included in major indexes, play a crucial role in shaping market sentiment. Their investment decisions are closely monitored by retail or individual investors, who often use these moves as indicators of the company's potential future performance.
The ownership structure of Philip Morris International is notably concentrated, with the top 14 shareholders holding 51% of the business. This concentration can provide valuable insights into the company's future prospects, as it suggests strong confidence among key stakeholders. It's worth noting that the company's impressive gross profit margin stands at 63.02%, as per InvestingPro data.
While institutional investors' actions can significantly impact the share price, their decisions should not be relied upon entirely. Despite the validation that these substantial stakeholders bring to a company, the potential for error remains as they are not immune to making incorrect predictions or assumptions. For instance, InvestingPro Tips highlights that 5 analysts have revised their earnings downwards for the upcoming period for Philip Morris International, indicating potential challenges ahead.
Analysts recommend a review of Philip Morris International's earnings history for a more comprehensive understanding of its performance. This review, coupled with an analysis of analyst forecasts and ownership data, can provide a more nuanced perspective on the company's potential trajectory. As a tip from InvestingPro, the company has maintained dividend payments for 16 consecutive years and pays a significant dividend to shareholders, with a current dividend yield of 5.59%.
For more insights, it's recommended to explore additional InvestingPro Tips, which include a range of metrics and analytical tools that can provide a deeper understanding of a company's performance and potential. These tips are available with the InvestingPro product, which can be accessed here.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.