Significantly high institutional ownership implies First Bank’s stock price is sensitive to their trading actions
The top 17 shareholders own 50% of the company
Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
To get a sense of who is truly in control of First Bank (NASDAQ:FRBA), it is important to understand the ownership structure of the business. We can see that institutions own the lion’s share in the company with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let’s delve deeper into each type of owner of First Bank, beginning with the chart below.
NasdaqGM:FRBA Ownership Breakdown January 13th 2025
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.
As you can see, institutional investors have a fair amount of stake in First Bank. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at First Bank’s earnings history below. Of course, the future is what really matters.
NasdaqGM:FRBA Earnings and Revenue Growth January 13th 2025
We note that hedge funds don’t have a meaningful investment in First Bank. Our data shows that Patriot Financial Manager, L.P. is the largest shareholder with 8.1% of shares outstanding. With 7.3% and 6.0% of the shares outstanding respectively, BlackRock, Inc. and 1st & Main Growth Partners are the second and third largest shareholders. Additionally, the company’s CEO Patrick Ryan directly holds 1.4% of the total shares outstanding.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can see that insiders own shares in First Bank. It has a market capitalization of just US$329m, and insiders have US$26m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
The general public– including retail investors — own 35% stake in the company, and hence can’t easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
With a stake of 14%, private equity firms could influence the First Bank board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and — as the name suggests — don’t invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
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.
