If you want to know who actually controls Sandy Spring Bancorp, Inc. (NASDAQ: SASR), you’ll need to look at the composition of its stock register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decline in insider participation in companies that were previously public.
Sandy Spring Bancorp isn’t huge, but it’s not particularly small either. It has a market capitalization of US$2.2 billion, which means it generally expects to see certain institutions listed on the stock register. Looking at our ownership group data (below), it appears that institutional investors have bought the company. Let’s take a closer look at what different types of shareholders can tell us about Sandy Spring Bancorp.
What does 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 is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Sandy Spring Bancorp already has institutions on the stock register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Sandy Spring Bancorp’s past earnings trajectory, (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. We note that hedge funds have no significant investment in Sandy Spring Bancorp. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 9.6% of shares outstanding. T. Rowe Price Group, Inc. is the second largest shareholder with 6.5% of common stock and The Vanguard Group, Inc. owns approximately 5.5% of the company’s stock.
A closer look at our ownership figures suggests that the top 17 shareholders hold a combined ownership of 51%, implying that no single shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Insider ownership of Sandy Spring Bancorp
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders hold shares of Sandy Spring Bancorp, Inc. It’s a pretty big company, so it’s generally positive to see a potentially significant alignment. In this case, they own about $66 million worth of stock (at today’s prices). It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.
General public property
With a 28% stake, the general public, consisting mostly of individual investors, has some influence over Sandy Spring Bancorp. While that size of ownership might not be enough to sway a political decision in their favor, they can still make a collective decision. impact on company policies.
It is always useful to think about the different groups that own shares in a company. But to better understand Sandy Spring Bancorp, we need to consider many other factors. For example, we found 1 warning sign for Sandy Spring Bancorp which you should be aware of before investing here.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check this free report showing analysts’ predictions for its future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.