Unilever is a global FMCG group that manufactures and sells consumer goods. Their product categories include Foods & Refreshments, Home Care, and Beauty & Personal Care. Understanding the ownership structure of this FMCG giant (LON: ULVR) is crucial before investing as the Institutions hold the largest chunk of the company’s ownership. This equity is accounting for 67% of the total.
Who actually owns Unilever?
From the total equity, hedge funds hold a minimal number of shares in Unilever. BlackRock, Inc. is the largest shareholder with 9.2% of the shares outstanding, the Vanguard Group, Inc. is in second place, and Wellington Management Group LLP is in 3rd with 5.0% and 2.0% of shares outstanding, respectively.
With access to enormous amounts of capital, the moves of institutional investors are closely watched by individual or retail investors. However, a significant amount of institutional money invested in a company is generally viewed positively as it displays the trust that fund managers have in its stock
The return on Capital employed
With such significant names in the equity list, the company has a lot of equity capital along with over £20 billion worth of debt. However, the returns on capital employed (ROCE) trend at Unilever does not inspire confidence. Around five years ago, the returns on capital were at 24%, but since then, it has fallen to 19%. Despite this, given that capital employed and revenue have both increased,
It appears that the business is currently pursuing growth but at the cost of short-term returns. If these investments prove successful, they can be very beneficial for long-term stock performance.
Technical Analysis and Prediction of the ULVR Stock Price
As of right now, the ULVR stock is trading at £4041. It has an immediate support level of £3965, and the first supply zone is at £4138. The stock price initially reached a high of £4165 and then proceeded to have a long shadow candle, consuming the liquidity of its low at £3982.
At present, the RSI is in its neutral zone of 47 and is currently silent about the prophecy. However, the ULVR stock price prediction will be bearish as the bears will generally attempt to take out a low, filling the previous candle shadows.
Conclusion
The global FMCG giant (LON: ULVR) has its major ownership in the names of big institutional investors, which has impacted the returns on capital. The ULVR stock price is currently in a sideways trend, but it is predicted that it is likely to take out another low.
Technical Levels
Support: £3965, and £3857
Resistance: £4138, and £4248
