Institutional investors are 1st Source Corporation’s (NASDAQ:SRCE) biggest bettors and were rewarded after last week’s $50 million market cap gain

To get an idea of ​​who actually controls 1st Source Corporation (NASDAQ: SRCE), it’s important to understand the company’s ownership structure. The group with the largest number of shares in the company, around 45% to be precise, are institutions. In other words, the group faces the maximum upside potential (or downside risk).

And last week, institutional investors ended up benefiting the most after the company hit $1.1 billion in market capitalization. The one-year ROI is currently 12% and last week’s gain would have been more than welcome.

In the table below, we zoom in on the different ownership groups of 1st Source.

See our latest analysis for 1st Source

NasdaqGS: SRCE Ownership Breakdown July 23, 2022

What does institutional ownership tell us about the 1st source?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that 1st Source has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out 1st Source’s revenue history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS: SRCE Earnings and Revenue Growth July 23, 2022

Hedge funds don’t have a lot of stocks in 1st Source. Looking at our data, we can see that the largest shareholder is CEO Christopher Murphy with 18% of the shares outstanding. For context, the second shareholder owns approximately 6.8% of the outstanding shares, followed by a 6.1% ownership by the third shareholder.

We dug a little deeper and found that 9 of the major shareholders make up about 51% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thus balancing everyone’s interests somewhat.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

1st Source Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

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.

Our most recent data indicates that insiders own a reasonable proportion of 1st Source Corporation. Insiders hold $366 million worth of stock in the $1.1 billion company. It is quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have been buying or selling.

General public property

The general public, who are typically individual investors, own a 20% stake in 1st Source. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand the 1st Source, we must take into account many other factors. Consider the risks, for example. Every business has them, and we’ve spotted 1 warning sign for the 1st source you should know.

But finally it’s the future, not the past, that will determine the success of the owners of this business. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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.

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