To understand who really controls Investor Holding Corporation (NASDAQ:ISTR), it’s important to understand the business’s ownership structure. The institution holding 54% shares owns the largest stake in the company. In other words, the group stands to gain the most if the share price rises (or suffer the most loss if it falls).
Given the vast amount of money and research capacity at their disposal, institutional ownership tends to carry a lot of weight, especially for individual investors. Therefore, a significant portion of institutional money invested in a company is usually a big vote of confidence for its future.
Let’s take a closer look at each type of owner in Investar Holding, starting with the chart below.
View Investar Holding’s Latest Analysis
What does institutional ownership tell us about investor holdings?
Because institutional investors typically measure themselves against benchmarks when reporting to their investors, they are often more enthusiastic about stocks when included in a major index. Most companies are expected to have several institutions registered, especially if they are growing.
Investor Holding already holds the institution in the Share Register. In fact, they own a sizeable stake in the company. This indicates a certain level of credibility among professional investors. But that fact alone cannot be relied upon. Because institutional investors, like everyone else, sometimes make bad investments. When two large institutional investors try to sell their shares at the same time, it’s not uncommon for the stock price to drop significantly. As such, it’s worth taking a look at Investar Holding’s historical earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own more than 50% of a company and can have a significant influence on board decisions. Hedge funds note that he has made no meaningful investments in Investar Holding. Looking at the data, we can see that the largest shareholder is Fourthstone LLC, with his 10% of outstanding shares. For context, the second largest shareholder holds approximately 5.8% of the outstanding shares, and the third largest shareholder holds his 4.2%. Additionally, CEO John D’Angelo owns his 1.9% stake in the company.
A closer look at the ownership figures reveals that the top 17 shareholders have a combined 51% ownership, with no single shareholder having a majority.
Researching institutional ownership is a good way to measure and filter a stock’s expected performance. The same can be achieved by studying analyst sentiment. There are many analysts covering stocks, so it might be worth taking a look at their forecasts as well.
Insider Ownership of Investar Holding
The definition of an insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, or at least board members. Management should be responsive to the board, and the board should represent the interests of the shareholders. In particular, top-level managers may be on the board of directors.
Insider ownership is positive if leadership shows that they think like true owners of the company. However, high insider ownership can also give greater power to smaller groups within the company. This can be negative in some situations.
It turns out that an insider owns shares of Investar Holding Corporation. As an individual, insiders say he owns his $18 million worth of a $216 million company. While it’s nice to see insider investments, it might be worth checking to see if those insiders are buying.
general public
The general public, usually private investors, hold 32% of Investar Holding’s shares. Ownership of this magnitude may not be enough to move policy decisions in their favor, but they can still collectively influence company policy.
Private equity ownership
With a 5.8% ownership interest, the private equity firm is positioned to play a role in shaping corporate strategy focused on value creation. Some may like this because private equity can be an activist to hold management accountable. But sometimes private equity is sold and the company goes public.
Next steps:
It’s well worth considering the different groups that own companies, but there are other factors that are even more important.Case in point: we found Investar Holding’s 3 Warning Signs One of them can be serious.
If you’re like me, think about whether this company will grow or shrink. Luckily, you can check out this free report that shows analysts’ predictions for the future.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
Do you have feedback on this article? What interests you? contact directly with us. Or send an email to our editorial team (at) Simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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