What types of shareholders hold the majority of shares in Summit Financial Group, Inc. (NASDAQ: SMMF)?

0

If you want to know who actually controls Summit Financial Group, Inc. (NASDAQ: SMMF), then you will need to examine the makeup of its share register. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

Summit Financial Group is not a large corporation by global standards. It has a market cap of $ 362 million, which means it wouldn’t get the attention of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. We can zoom in on the different ownership groups, to find out more about Summit Financial Group.

Check out our latest analysis for Summit Financial Group

NasdaqGS: Distribution of the SMMF property November 8, 2021

What does institutional ownership tell us about Summit Financial Group?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

Summit Financial Group already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the title and appreciate it. But like everyone else, they can be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out the Summit Financial Group earnings history below. Of course, the future is what really matters.

profit and revenue growth
NasdaqGS: SMMF Profit and Revenue Growth November 8, 2021

Summit Financial Group is not owned by hedge funds. Castle Creek Capital LLC is currently the largest shareholder in the company with 7.7% of the shares outstanding. For context, the second largest shareholder owns approximately 5.3% of the outstanding shares, followed by 4.0% ownership by the third largest shareholder. In addition, we found that H. Maddy, the CEO has 0.8% of the shares attributed to their name.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. The title is covered by analysts, but it could become even more famous over time.

Insider ownership of Summit Financial Group

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders have a significant stake in Summit Financial Group, Inc. It has a market capitalization of only US $ 362 million, and insiders have US $ 45 million in shares in their own name. It’s great to see insiders so invested in the business. It might be worth checking out if these insiders have bought recently.

General public property

The general public has a substantial 52% stake in Summit Financial Group, which suggests that it is quite a popular stock. This size of property gives mainstream investors some collective power. They can and probably do influence decisions about executive compensation, dividend policies and proposed business acquisitions.

Private shareholders

Private equity firms have a 7.7% stake in Summit Financial Group. This suggests that they can influence key policy decisions. Some might like this, as sometimes private capital is activists holding management accountable. But other times, the private equity sells, after you take the company public.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Note that Summit Financial Group displays 2 warning signs in our investment analysis , and 1 of them is significant …

But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


Source link

Leave A Reply

Your email address will not be published.