Yahoo Finance Nicolet Bankshares, Inc.'s (NYSE:NIC) 6.2% loss last week hit both individual investors who own 45% as well as institutions
Key Insights
The considerable ownership by individual investors in Nicolet Bankshares indicates that they collectively have a greater say in management and business strategy
48% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Nicolet Bankshares, Inc. (NYSE:NIC), it is important to understand the ownership structure of the business. With 45% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Following a 6.2% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 43% stock also took a hit.
Let's delve deeper into each type of owner of Nicolet Bankshares, beginning with the chart below.
View our latest analysis for Nicolet Bankshares
What Does The Institutional Ownership Tell Us About Nicolet Bankshares?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Nicolet Bankshares already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nicolet Bankshares' historic earnings and revenue below, but keep in mind there's always more to the story.
Nicolet Bankshares is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 6.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.1% and 4.7%, of the shares outstanding, respectively. Additionally, the company's CEO Michael Daniels directly holds 0.6% of the total shares outstanding.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Nicolet Bankshares
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
It seems insiders own a significant proportion of Nicolet Bankshares, Inc.. Insiders own US$136m worth of shares in the US$1.2b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nicolet Bankshares. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Nicolet Bankshares better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Nicolet Bankshares you should know about.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
