Key Insights

• The considerable ownership by retail investors in Carter Bankshares indicates that they collectively have a greater say in management and business strategy

• A total of 25 investors have a majority stake in the company with 39% ownership

• 43% of Carter Bankshares is held by Institutions

If you want to know who really controls Carter Bankshares, Inc. (NASDAQ:CARE), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And institutions on the other hand have a 43% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

Let's delve deeper into each type of owner of Carter Bankshares, beginning with the chart below.

View our latest analysis for Carter Bankshares

What Does The Institutional Ownership Tell Us About Carter Bankshares?

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 Carter Bankshares. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Carter Bankshares, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Carter Bankshares. The company's largest shareholder is BlackRock, Inc., with ownership of 7.3%. The Vanguard Group, Inc. is the second largest shareholder owning 5.5% of common stock, and AllianceBernstein L.P. holds about 5.1% of the company stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Carter Bankshares

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.