With 44% stake, First Mid Bancshares, Inc. (NASDAQ:FMBH) seems to have captured institutional investors' interest
In This Article:
Key Insights
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Institutions' substantial holdings in First Mid Bancshares implies that they have significant influence over the company's share price
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A total of 25 investors have a majority stake in the company with 48% ownership
A look at the shareholders of First Mid Bancshares, Inc. (NASDAQ:FMBH) can tell us which group is most powerful. The group holding the most number of shares in the company, around 44% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
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. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of First Mid Bancshares.
View our latest analysis for First Mid Bancshares
What Does The Institutional Ownership Tell Us About First Mid Bancshares?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
First Mid Bancshares 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. 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 Mid Bancshares' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in First Mid Bancshares. BlackRock, Inc. is currently the company's largest shareholder with 7.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.5% and 5.3% of the stock.
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.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.