Could The Bancorp, Inc. (NASDAQ: TBBK) ownership structure tell us anything useful?
A look at the shareholders of The Bancorp, Inc. (NASDAQ: TBBK) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of small companies. Companies that have been privatized tend to have low insider participation.
With a market cap of US $ 1.4 billion, Bancorp is a decent size, so it’s probably on the radar of institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. We can zoom in on the different property groups, to find out more about Bancorp.
NasdaqGS: distribution of ownership of TBBK May 10, 2021
What does institutional ownership tell us about Bancorp?
Many institutions measure their performance against an index that approximates the local market. They therefore generally pay more attention to companies that are included in the main indices.
Bancorp already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. If multiple institutions change their perspective on a stock at the same time, you could see the stock price drop quickly. So it’s worth looking at Bancorp’s earnings history below. Of course, it’s the future that really matters.
NasdaqGS: TBBK Profits and Revenue Growth May 10, 2021
Institutional investors own more than 50% of the company, so together this can probably strongly influence the decisions of the board of directors. Hedge funds don’t have a lot of shares in Bancorp, with the company’s main shareholder being Frontier Capital Management Co., LLC, with a 9.4% stake. With 7.8% and 6.6% of shares outstanding, respectively, BlackRock, Inc. and Dimensional Fund Advisors LP are the second and third largest shareholders. In addition, CEO Damian Kozlowski owns 0.7% of the shares of the company.
Looking at the register of shareholders, we can see that 51% of the property is controlled by the 12 major shareholders, which means that no single shareholder has a controlling interest in the property.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There is some analyst coverage on the stock, but not a lot. So there is room for her to get more coverage.
Bancorp Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately responds to the advice. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
We can see that insiders own shares in The Bancorp, Inc. Insiders own a significant stake worth US $ 61 million. Most would see it as a real advantage. Most would say it shows the alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.
General public property
The general public, with a 10% stake in the company, will not be easily ignored. While this group may not necessarily get it right, it can certainly have a real influence on the way the business is run.
While it is worth considering the different groups that own a business, other factors are even more important. Note that Bancorp displays 2 warning signs in our investment analysis , you should know …
Ultimately the future is the most important. You can access it free analyst forecast report for the company.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month in which the balance sheet is dated. This may not be consistent with figures in annual reports.
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