Sandy Spring Bancorp, Inc. (NASDAQ:SASR) is a favorite amongst institutional investors who own 67%
In This Article:
Key Insights
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Significantly high institutional ownership implies Sandy Spring Bancorp's stock price is sensitive to their trading actions
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A total of 25 investors have a majority stake in the company with 50% ownership
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
Every investor in Sandy Spring Bancorp, Inc. (NASDAQ:SASR) should be aware of the most powerful shareholder groups. With 67% stake, institutions possess the maximum shares in the company. 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.
Let's delve deeper into each type of owner of Sandy Spring Bancorp, beginning with the chart below.
View our latest analysis for Sandy Spring Bancorp
What Does The Institutional Ownership Tell Us About Sandy Spring Bancorp?
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.
We can see that Sandy Spring Bancorp does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Sandy Spring Bancorp's historic earnings and revenue below, but keep in mind there's always more to the story.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Sandy Spring Bancorp. Our data shows that BlackRock, Inc. is the largest shareholder with 9.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.9% and 5.2%, of the shares outstanding, respectively.
A closer look at our ownership figures suggests that the top 25 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.