Positive week for institutional investors at Seacoast Banking Corporation of Florida (NASDAQ:SBCF) who have lost 7.3% over the past year
Every Seacoast Banking Corporation of Florida (NASDAQ:SBCF) investor should know the most powerful shareholder groups. And the group that holds the biggest slice of the pie are institutions with 86% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
Institutional investors would likely welcome last week’s 5.0% rise in stock prices after a year of 7.3% losses as a sign that yields should start to rise.
Let’s take a closer look at what different types of shareholders can tell us about Seacoast Banking Corporation of Florida.
What does institutional ownership tell us about Seacoast Banking Corporation of Florida?
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 can see that Florida’s Seacoast Banking Corporation 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 is worth taking a look at the Seacoast Banking Corporation of Florida Earnings History below. Of course, the future is what really matters.
Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. Hedge funds don’t have many shares in Seacoast Banking Corporation of Florida. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 15% of the shares outstanding. Capital Research and Management Company is the second largest shareholder with 6.8% of common stock and The Vanguard Group, Inc. owns approximately 6.7% of the company’s stock.
A closer look at our ownership figures suggests that the top 11 shareholders hold a combined ownership of 51%, implying that no single shareholder has a majority.
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 plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Insider ownership of Seacoast Banking Corporation of Florida
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
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.
We may report that insiders hold shares of Seacoast Banking Corporation of Florida. 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 13% 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.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. For example, we found 3 warning signs for Seacoast Banking Corporation of Florida which you should be aware of before investing here.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check this free report showing analysts’ predictions for its 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 the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.