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Institutional investors continue to control a significant 83% of Pure Storage (NYSE: NYSE:), with FMR LLC, The Vanguard Group, and T. Rowe Price Group leading the pack. This dominant stake allows these investors to influence share price, and board decisions, and earn professional investor credibility.
The recent market cap of Pure Storage has seen a decline to $10 billion. This drop in market cap, however, was softened by a 9.2% one-year return. The performance of these institutional investors is often benchmarked against an index.
While institutional investors hold sway over Pure Storage, the company’s earnings history remains an essential factor for consideration. Furthermore, despite the considerable influence of institutional investors, hedge funds hold only a limited number of shares.
The potential for a swift share price decrease exists if multiple institutions alter their view on Pure Storage simultaneously. This scenario underlines the significant impact these institutional investors can have on the company’s share price and overall market performance.
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