National Bank Holding Corporation (NYSE: NBHC) is favored by institutional owners who hold 81% of the company

A look at the shareholders of National Bank Securities Corporation (NYSE: NBHC) can tell us which group is more powerful. The group holding the largest number of shares in the company, about 81% to be precise, are institutions. In other words, the group faces the maximum upside potential (or downside risk).

Given the huge amount of money and research capabilities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a large amount of institutional money invested in a company is generally considered a positive attribute.

Let’s take a closer look at what the different types of shareholders can tell us about National Bank Securities.

See our latest analysis for National Bank Securities

distribution of property

What does institutional ownership tell us about National Bank Securities?

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.

National Bank Investments already has institutions registered in the share register. Indeed, they hold a respectable stake in 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. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see National Bank Securities historical earnings and revenue below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth

earnings-and-revenue-growth

Since institutional investors own more than half of the issued shares, the board will likely have to pay attention to their preferences. We note that hedge funds have no significant investment in National Bank Securities. BlackRock, Inc. is currently the company’s largest shareholder with 12% of the shares outstanding. With 8.5% and 7.7% of the shares outstanding, respectively, The Vanguard Group, Inc. and T. Rowe Price Group, Inc. are the second and third largest shareholders. Additionally, we found that G. Laney, the CEO has 0.8% of the shares attributed to his name.

We dug a little deeper and found that 9 of the major shareholders make up around 50% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thus balancing everyone’s interests somewhat.

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. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider ownership of National Bank Securities

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.

Insider ownership is positive when it signals that executives think like the true 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.

Our most recent data indicates that insiders hold certain shares of National Bank Securities Corporation. This is a big company, so it’s good to see this level of alignment. Insiders hold $31 million worth of stock (at current prices). It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.

General public property

The general public, including retail investors, owns 17% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand National Bank Securities, several other factors must be taken into account. Consider the risks, for example. Every business has them, and we’ve spotted 2 warning signs for National Bank Securities you should know.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

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.

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