key insights
-
Significant insider control over HBT Financial suggests vested interest in company growth
-
The company's largest shareholder is Fred Drake, who owns 55% of the stock.
-
Insiders have recently bought
A look at HBT Financial, Inc. (NASDAQ:HBT)'s shareholders can tell us which group is the most powerful. We can see that individual insiders control the majority of the company, with an ownership of 60%. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
A quick look at our data shows that insiders have been buying shares in the company lately. This may indicate that the company expects the stock price to increase in the near future.
The chart below zooms in on the different ownership groups for HBT Financial.
Check out our latest analysis for HBT Financial.
What does institutional ownership indicate about HBT Financial?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
HBT Financial already has a share registry. In fact, they own a significant stake in the company. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes make mistakes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see HBT Financial's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in HBT Financial. Actions speak louder than words, so we think it's a good sign when insiders own a significant stake in a company. In the case of HBT Financial, Fred Drake, a key executive of the company, is the company's largest shareholder with 55% of the outstanding shares. BlackRock, Inc. and Roger Baker, Inc. hold 5.7% and 3.1% of the outstanding shares, respectively, making them the second and third largest shareholders. Interestingly, the third largest shareholder, Roger Baker, is also a member of the board of directors, indicating strong insider ownership among the company's top shareholders.
While researching 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 are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership in HBT Financial
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. The answers of company management to the board of directors and the latter must represent the interests of shareholders. In particular, top-level managers themselves may sit on the board.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
Our most recent data indicates that insiders own the majority of HBT Financial, Inc. stock. This means that insiders can collectively make decisions for the company. That means they own US$360m worth of shares in the US$602m company. That's very meaningful. Most would argue that this is a positive thing, as it shows strong alignment with shareholders. You can click here to see if insiders have been buying or selling.
Open to the public
The general public, usually retail investors, owns 16% of HBT Financial's shares. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To do so, you need to know the following: 1 warning sign Found at HBT Financial.
after all the future is most important.You can access this free A report on analyst forecasts for a company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
