Do insiders own a lot of BNK Banking Corporation Limited (ASX:BBC) shares?
Each investor of BNK Banking Corporation Limited (ASX: BBC) should know the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I like to see at least a little insider ownership. As Charlie Munger said “Show me the incentive and I’ll show you the result”.
BNK Banking is not a big company by global standards. It has a market capitalization of A$144 million, which means it wouldn’t get the attention of many institutional investors. Our analysis of societal ownership below shows that institutions own shares in society. Let’s take a closer look at what different types of shareholders can tell us about BNK Banking.
What does institutional ownership tell us about BNK Banking?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
We see that BNK Banking has many institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the BNK Banking Earnings History below. Of course, the future is what really matters.
Hedge funds do not have many shares in BNK Banking. Because actions speak louder than words, we consider it a good sign when insiders hold a significant stake in a company. In the case of BNK Banking, its chief executive, John Kolenda, is the largest shareholder, holding 12% of the outstanding shares. Sf Legacy Investments Limited is the second largest shareholder with 10% of the ordinary shares, and Resimac Limited, Asset Management Arm owns approximately 8.3% of the company’s shares. Additionally, the company’s CEO, Allan Savins, directly owns 1.3% of the total shares outstanding.
We also observed that the top 9 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.
BNK Banking Insider Ownership
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
It appears that insiders hold a large share of BNK Banking Corporation Limited. Insiders hold A$33 million worth of shares in the A$144 million company. It’s great to see insiders so invested in the company. it might be worth checking out whether these insiders have purchased recently.
General public property
The general public, including retail investors, owns 37% of the company’s shares and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
We can see that private companies own 24% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
It is always useful to think about the different groups that own shares in a company. But to better understand BNK Banking, we need to consider many other factors. For example, we found 3 warning signs for BNK Banking (1 is a little unpleasant!) which you should be aware of before investing here.
Sure this may not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.