ANDV: Gauging Institutional Ownership in Andeavor Stock




So far in this series, we’ve seen how Andeavor’s stock has outperformed the broader market and what ANDV’s moving average suggests. We also estimated Andeavor stock’s three-month price forecast range for the period ending December 31, 2017, based on its implied volatility. Plus, we reviewed analysts’ expectations of Andeavor’s dividend payment for the next quarter. Now we’ll look at institutional ownership in Andeavor.

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Institutional ownership in ANDV

Institutional ownership in Andeavor currently stands at ~80% of outstanding shares, having fallen from ~95% in April 2017. The abrupt drop in institutional ownership in ANDV is due to the completion of the Western Refining (or WNR) acquisition. The acquisition resulted in changes to Andeavor’s equity as WNR shareholders had an option to choose 0.4350 Andeavor shares or $37.3 cash for a share of WNR, subject to a ceiling of 10% of equity consideration. So the acquisition resulted in changes to the number of outstanding shares for Andeavor, which led to changes in institutional ownership, represented as a percentage of outstanding shares.

The institutions with the highest holdings in Andeavor include The Vanguard Group, State Street Global Advisors, Boston Partners, and BlackRock Institutional Trust Company. On average, analyzing the past six months’ data, all four institutions have increased their total holdings in Andeavor.

Point72 Asset Management has sold the most ANDV shares in the past six months, but Franklin Mountain Investments has acquired the largest ANDV shares in the past six months.

Peers’ institutional holdings

ANDV’s peers Marathon Petroleum (MPC), Valero Energy (VLO), and Phillips 66 (PSX) have witnessed rises in institutional holdings by 0.2%, 2.6%, and 0.1%, respectively. Currently, institutional holdings in MPC, VLO, and PSX stand at ~81%, ~84%, and ~71%, respectively.

In the next part of this series, we’ll evaluate where Andeavor stands in terms of forward valuations compared to peers.


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