Exploring Service Corporation International (SCI) Investor Profile: Who’s Buying and Why?

You're looking at Service Corporation International (SCI), the North American deathcare leader, and wondering who exactly is buying into a business with a $16.8 billion backlog in future preneed sales and a TTM revenue of $4.29 billion USD as of November 2025. It's a fair question, because the investor profile here is defintely not a retail-heavy story; institutional ownership currently sits at a massive 84.65% of the company, meaning the smart money-the big funds-are the primary drivers. Are these long-term conviction plays, or are they tactical positions based on the company's narrowed 2025 adjusted EPS guidance of $3.80 to $3.90 and raised cash flow outlook of $910 million to $950 million? We need to understand the intent behind the numbers, especially when giants like Vanguard Group Inc. hold approximately 14 million shares, making them a top shareholder. Let's dig into the 13F filings to map out who is accumulating and who is scaling back, so you can align your strategy with the movements of the market's most influential players.

Who Invests in Service Corporation International (SCI) and Why?

You're looking at a company that is the undisputed leader in a non-cyclical, essential industry, and its investor base reflects that stability. The short answer is that Service Corporation International (SCI) is overwhelmingly owned by large, long-term institutional money, with a smaller but defintely loyal retail following.

As of late 2025, institutional investors-think massive mutual funds, pension funds, and asset managers like BlackRock-hold the lion's share, controlling approximately 86.78% of the company's outstanding shares. This high concentration signals confidence from major financial players. Retail investors and company insiders hold the remaining float, but their influence is dwarfed by the institutional block. It's a 'set it and forget it' stock for many of the world's largest funds.

• Institutional money dominates, holding nearly 87% of the stock.
• The Vanguard Group, Inc. and BlackRock, Inc. are consistently among the top holders.
• A high institutional ownership percentage suggests a stable, less volatile stock.

The Core Investment Motivations: Stability and Growth

Investors aren't buying Service Corporation International for a quick flip; they're buying it for its unique blend of defensive stability and predictable, acquisition-led growth. The 'deathcare' industry is recession-resistant-it provides services that people must purchase regardless of the economic climate. That stability is a huge draw for large funds looking to anchor their portfolios.

The company's management targets an 8% to 12% long-term earnings growth framework, which is impressive for a mature industry leader. For the 2025 fiscal year, Service Corporation International confirmed its adjusted earnings per share (EPS) guidance range of $3.70 to $4.00, demonstrating that growth engine is still running strong. Plus, the company manages approximately $7 billion in pre-need funeral and cemetery trust funds, which provides a massive, stable pool of future revenue.

The other major draw is the dividend. Service Corporation International has increased its dividend for 15 consecutive years, a track record that appeals directly to income-focused investors. The annual dividend is currently $1.28 per share, translating to a dividend yield of around 1.61% as of November 2025. That long streak of increases shows management's commitment to returning cash to shareholders, a key signal for dividend growth funds.

Investment Strategies: Long-Term Holding and Value Play

The dominant strategy among Service Corporation International investors is undoubtedly long-term holding. When you see passive giants like Vanguard and BlackRock as the top owners, you know a significant portion of the stock is simply sitting in index and exchange-traded funds (ETFs). Their strategy is market-matching, minimizing turnover, and benefiting from the company's consistent performance.

But beyond passive investing, the stock attracts two other key strategies: dividend growth and value investing. The consistent dividend increases make it a core holding for dividend-focused portfolios. For value investors, the stock presents a compelling case; a recent Discounted Cash Flow (DCF) analysis suggested the stock was undervalued by approximately 22.1%, with an estimated intrinsic value of $102.92 per share.

Here's the quick math: The company's five-year total shareholder return is nearly 79%, proving that a long-term, buy-and-hold approach has been highly effective. Management's strategy of disciplined acquisitions and share buybacks-reducing the shares outstanding from 340 million in 2004 to around 140 million today-is a clear capital allocation strategy designed for long-term value accretion. If you want to dig deeper into the company's foundation, you can check out Service Corporation International (SCI): History, Ownership, Mission, How It Works & Makes Money.

Next Step: Portfolio Manager: Review your current Service Corporation International position's weighting against your defensive stock allocation target by next Wednesday.

Institutional Ownership and Major Shareholders of Service Corporation International (SCI)

You're looking at a company like Service Corporation International (SCI) and seeing a steady, almost predictable business, but the real story is in who owns the stock and what that means for its future. The direct takeaway is that SCI is overwhelmingly an institutional favorite, with major passive and active funds holding a dominant stake, which provides significant stock stability but also mandates a clear, disciplined capital allocation strategy.

As a seasoned financial analyst, I see this high institutional ownership-around 91.51% of the shares outstanding as of late 2025-as a vote of confidence in the company's defensive, long-term business model. These aren't day traders; they are massive, long-horizon funds that anchor the stock. In simple terms, most of the stock is locked up by the biggest players, making it less volatile than a stock dominated by individual retail investors.

Top Institutional Investors: Who's Buying and Why

The list of top holders for Service Corporation International reads like a roster of the world's largest asset managers, indicating a preference for stable, cash-flow-rich businesses. These institutions, which include mutual funds and index funds, are primarily attracted to SCI's essential service nature and its consistent cash generation. For the 2025 fiscal year, the top three holders alone command a substantial portion of the company.

Here's the quick math on the largest holders based on their most recent 13F filings (mostly Q3 2025 data):

The Vanguard Group and BlackRock, Inc. are often the top holders in any large, stable company because they manage vast index funds (passive investing), meaning they buy and hold stocks like SCI simply because it's in a major index like the S&P 500. This buy-and-hold pressure is defintely a source of long-term stability for the stock price.

Changes in Ownership: The Near-Term Sentiment

While the overall institutional ownership remains high, looking at recent changes in their stakes gives you a read on near-term sentiment. In the latest quarterly filings for 2025, we see a mixed bag of activity, which is normal, but the net effect suggests a slight consolidation of conviction among some key players.

Most of the largest holders showed minor trimming, likely rebalancing their massive portfolios. For example, Vanguard Group Inc reduced its stake by about 2.152% in Q3 2025, and Baillie Gifford & Co cut their holding by 3.108%. But still, other institutions saw an opportunity to increase their position, which is where the active fund managers show their hand.

• Morgan Stanley increased its shares by 11.991% in Q2 2025.
• Swedbank AB was a notable buyer, increasing its stake by a significant 28.544% in Q3 2025.
• Fil Ltd also added to its position, increasing its shares by 4.782% in Q2 2025.

These increases, especially from active managers, suggest they see upside in SCI's execution of its strategy, which includes an updated 2025 adjusted earnings per share (EPS) guidance of $3.80-$3.90 and a raised cash flow outlook of $910-$950 million. They are betting on the company's ability to navigate cremation trends and execute its disciplined acquisition strategy, which you can read more about in Breaking Down Service Corporation International (SCI) Financial Health: Key Insights for Investors.

Impact of Institutional Investors on Strategy

The role of these large investors goes beyond just stock price stability; they are the ultimate arbiters of corporate strategy. With such a massive percentage of shares held by institutions, management is constantly focused on delivering shareholder value to meet their expectations.

This investor profile encourages a focus on capital returns and clear growth drivers. Here's the connection: SCI's strategy is explicitly built around an 8-12% earnings growth target, which is fueled by three levers: core business growth, acquisitions, and share buybacks. The institutional base demands this kind of clear, results-oriented framework.

For instance, the company has been aggressively reducing its share count through buybacks, having reduced shares outstanding from 340 million in 2004 to around 140 million recently. This is a direct action that institutional investors-who value a higher earnings per share (EPS)-strongly support. It's a classic move to maximize returns for long-term holders. Plus, their focus on a high cash flow outlook gives management the mandate to target $75-$125 million in annual acquisition spend to consolidate the fragmented deathcare industry.

The bottom line is that these big funds are not passive in their influence; they ensure SCI's management stays focused on the metrics that matter: predictable cash flow, disciplined acquisitions, and returning capital to shareholders.

Next Step: You should track the Q4 2025 13F filings, due in early 2026, to see if the net accumulation trend from Q3 continues, which would signal even stronger institutional conviction. Owner: You.

Key Investors and Their Impact on Service Corporation International (SCI)

You're looking at Service Corporation International (SCI) and trying to figure out who holds the reins and why. The direct takeaway is that Service Corporation International is overwhelmingly owned by large, passive institutional money-the kind of investors who demand consistent capital return and predictable growth, not activist shake-ups. This ownership structure means the company's focus on share buybacks and targeted acquisitions is less about internal strategy and more about meeting the expectations of its biggest shareholders.

Institutional investors-major funds, banks, and asset managers-hold the vast majority of Service Corporation International shares, totaling over 142.5 million shares across more than a thousand owners. This massive block of passive capital provides a stable base, but it also puts immense pressure on management to deliver on its long-term financial framework of 8% to 12% adjusted earnings per share (EPS) growth.

The Giants on the Cap Table

The top shareholders are the usual suspects in the institutional world, primarily passive index funds and massive asset managers. These aren't activist hedge funds looking to break up the business; they are long-term holders focused on governance and capital efficiency. Their sheer size dictates Service Corporation International's capital allocation policy, which is why the company is so committed to reducing its share count.

Here's a look at the top institutional holders, based on the latest filings near the end of the 2025 fiscal year:

Recent Investor Moves and What They Mean

The latest 13F filings show some interesting shifts, even among the giants. While the top three-Vanguard Group Inc., BlackRock, Inc., and Baillie Gifford & Co.-have all slightly decreased their positions in recent quarters, this is often a function of index rebalancing rather than a fundamental shift in their view of the company. Still, you should watch where the money is moving on the periphery.

The more telling moves are from active managers. For example, Swedbank AB made a major accumulation, increasing its position by over 28.5% in the third quarter of 2025. Morgan Stanley also increased its stake by nearly 12%. These increases suggest a conviction that Service Corporation International's funeral and cemetery business-which is guiding for adjusted EPS between $3.80 and $3.90 for 2025-is undervalued. They are betting on the stability of the deathcare industry.

• Monitor large, non-index fund buys for conviction.
• Swedbank's recent 28.5% increase is a strong signal.

The Real Investor Influence: Capital Allocation

Since the largest investors are passive, their influence is exerted through demanding efficient capital deployment (how the company uses its cash). Service Corporation International's management directly responds to this by prioritizing two things: accretive acquisitions and aggressive share repurchases. In the third quarter of 2025 alone, the company returned $123 million of capital to shareholders, including $78 million in share repurchases. They bought back just under 1 million shares at an average price of about $79.

Here's the quick math: reducing the total share count-which was just over 140 million at the end of Q3 2025-directly boosts earnings per share (EPS), even if net income stays flat. This is a direct strategy to satisfy the institutional holders who tie their investment thesis to that 8% to 12% EPS growth target. The company's raised 2025 operating cash flow guidance, now between $910 million and $950 million, gives them the flexibility to continue this shareholder-friendly strategy. This focus is a core part of their Mission Statement, Vision, & Core Values of Service Corporation International (SCI).

What this estimate hides is the long-term risk of relying too heavily on financial engineering (share buybacks) versus organic growth, but for now, it's defintely working to keep the big funds happy and the stock supported. The institutional profile is one of stability and a clear mandate for management: keep the cash flowing and the share count low.

Next step: Portfolio Manager: Model the impact of a $100 million share repurchase program on 2026 EPS by end of next week.

Market Impact and Investor Sentiment

You're looking at Service Corporation International (SCI) and wondering if the big money agrees with your thesis. The short answer is yes, major institutional investors and analysts are overwhelmingly positive on SCI right now, holding a consensus view of a Strong Buy or Buy as of late 2025.

This positive sentiment isn't just a feeling; it's grounded in the company's recent financial performance and confident management moves. For instance, in November 2025, the board demonstrated its conviction by boosting the quarterly cash dividend by a solid 6.3%, raising the payout to 34 cents per share. That's a clear signal from the top that the cash flow story is strong and sustainable, which is exactly what long-term investors want to see.

The stock is currently trading nearly 20% below the analyst consensus target, which is why many see it as a buying opportunity. It's a classic case of a solid, defensive business that's still undervalued.

Here's the quick math on investor perception:

• Consensus Analyst Rating: Strong Buy/Buy
• Consensus Price Target: $92.00
• Implied Upside: Roughly 15.22% from the mid-November 2025 price

Recent Market Reactions to Ownership Shifts

The market has responded well to SCI's operational execution, even if the near-term stock price has seen some volatility. The most telling recent reaction was in late October 2025, when the company released its Q3 results. Shares jumped 5.4% in the morning after reporting adjusted earnings per share (EPS) of $0.87, which beat analyst projections. This is a great example of the market rewarding fundamental strength, not just hype.

Still, to be fair, the stock's one-month return leading up to mid-November 2025 was down slightly by -1.39%. What this estimate hides is the long-term picture: the stock's five-year total return is still a robust 74.55%. This tells you that while the stock isn't immune to broader market jitters or short-term trading, the core investment thesis remains intact for major holders like Turtle Creek Asset Management, who highlighted SCI in their Q3 2025 investor letter.

The market is really focused on the company's ability to generate cash and grow its pre-need sales (services sold before they are needed). The Q3 2025 report showed a 9.6% increase in cemetery pre-need sales production, and that's a number investors love because it locks in future revenue.

Analyst Perspectives on Key Investor Impact and Future Growth

The analyst community views the impact of large, long-term investors as a stabilizing force, one that enables management to execute a disciplined, multi-year strategy. The key investors aren't looking for a quick flip; they are banking on the company's scale and its long-term growth framework. SCI is the largest provider in North America, but its market share is still only around 17%.

This low market share in a fragmented industry is the core opportunity. Analysts believe SCI can increase its market share to between 25% and 30% through disciplined acquisitions and organic growth. This strategy is supported by the raised 2025 full-year cash flow guidance, now set between $880 million and $940 million, which provides the capital for these strategic moves.

The company's ability to consistently deliver on its targets is what keeps the big funds invested. They are targeting an 8-12% earnings growth rate, driven by three clear levers: the core business, strategic acquisitions, and share buybacks. You can read more about the company's foundational strategy and ownership structure here: Service Corporation International (SCI): History, Ownership, Mission, How It Works & Makes Money.

The biggest risk analysts point to is the continued pressure from higher cremation rates, which typically offer lower margins than traditional funerals. But SCI is adapting by offering new cemetery options and focusing on stabilizing the cremation trend, which is a smart move. They defintely have a plan for the future.

Next step: Finance: Model the impact of a Canadian acquisition (like Arbor Memorial, which SCI is eyeing) on the 2026 revenue forecast by next Tuesday.