4 Large Cap Basic Materials Stocks With Heavy Institutional Ownership

Wall St. Watchdog generated a stock screen for large cap companies in the Basic Materials Sector that have a large percentage of their shares owned by institutional investors.  Some investors like to invest in the companies that institutional investors invest in, under the (perhaps incorrect) assumption that institutions have done sufficient due diligence on the company in question to make it a worthy investment.

Criteria for the screen are:

  • The company trades on a US exchange
  • The company does not trade on the pink sheets
  • The company is not located in China
  • The company’s market capitalization is at least $1 billion
  • At least 90% of the company’s shares are owned by institutional investors
  • The company was profitable in the last quarter
  • The company has grown its revenue year-over-year by at least 35%

Following is information on the companies that met these criteria:

  • CF Industries Holdings, Inc. (NYSE:CF): Institutions own 91.48% of the shares. Its market capitalization is $10,414,400,000, its revenue for the most recent fiscal year is $3,965,000,000, which represents a change of 52.01% for the year-over-year period. The shares most recently traded at $145.69. About the company:  CF Industries Holdings, Inc. manufactures and distributes nitrogen and phosphate fertilizer products in North America. The Company’s principal products in the nitrogen segment are ammonia, urea and urea ammonium nitrate solution and its principal products in the phosphate segment are diammonium phosphate, monoammonium phosphate, and granular muriate of potash.
  • Noranda Aluminum Holding Corporation (NYSE:NOR): Institutions own 90.44% of the shares. Its market capitalization is $1,002,398,000, its revenue for the most recent fiscal year is $1,294,900,000, which represents a change of 68.19% for the year-over-year period. The shares most recently traded at $15.00. About the company:  Noranda Aluminum Holding Corp is an integrated producer of aluminum products, as well as rolled aluminum coils. The Company produces aluminum products in the form of billets, rods and sows, used mainly for building construction, architectural and transportation applications. Noranda also produces foil and light gauge sheet products from its rolling mills.
  • OM Group, Inc. (NYSE:OMG): Institutions own 99.92% of the shares. Its market capitalization is $1,208,515,000, its revenue for the most recent fiscal year is $1,196,646,000, which represents a change of 37.28% for the year-over-year period. The shares most recently traded at $38.98. About the company:  OM Group, Inc. produces and markets value-added metal-based specialty chemicals and powders. The Company supplies metal carboxylates, inorganic metal salts, and metal powders for diverse applications to a variety of industries. OM’s products are used to manufacture coatings, custom catalysts, liquid detergents, lubricants, fuel additives, colorants, and rechargeable batteries.
  • Stillwater Mining Company (NYSE:SWC): Institutions own 92.62% of the shares. Its market capitalization is $2,427,385,000, its revenue for the most recent fiscal year is $555,878,000, which represents a change of 40.93% for the year-over-year period. The shares most recently traded at $23.56. About the company:  Stillwater Mining Company explores for, develops, extracts, processes, and refines platinum, palladium, and associated metals from the J-M Reef located in Stillwater and the East Boulder Mine near McLeod, Montana. The Company also recycles automotive catalytic converters in its processing facility in Columbus, Montana.

(Note: Selected financial data are sourced from screener.co.  All data are assumed to be accurate.)

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