With 63% ownership, Sterling Bancorp, Inc. (Southfield, MI) (NASDAQ:SBT) insiders have a lot riding on the company's future
Key Insights
Sterling Bancorp (Southfield MI)'s significant insider ownership suggests inherent interests in company's expansion
61% of the business is held by the top 2 shareholders
19% of Sterling Bancorp (Southfield MI) is held by Institutions
A look at the shareholders of Sterling Bancorp, Inc. (Southfield, MI) (NASDAQ:SBT) can tell us which group is most powerful. With 63% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
So it follows, every decision made by insiders of Sterling Bancorp (Southfield MI) regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of Sterling Bancorp (Southfield MI).
See our latest analysis for Sterling Bancorp (Southfield MI)
What Does The Institutional Ownership Tell Us About Sterling Bancorp (Southfield MI)?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Sterling Bancorp (Southfield MI) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Sterling Bancorp (Southfield MI)'s earnings history below. Of course, the future is what really matters.
It would appear that 7.8% of Sterling Bancorp (Southfield MI) shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Our data shows that Erwin Rubenstein is the largest shareholder with 38% of shares outstanding. With 23% and 7.8% of the shares outstanding respectively, Scott Seligman and FJ Capital Management, LLC are the second and third largest shareholders. In addition, we found that Thomas O'Brien, the CEO has 1.3% of the shares allocated to their name.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 61% stake.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Sterling Bancorp (Southfield MI)
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own the majority of Sterling Bancorp, Inc. (Southfield, MI). This means they can collectively make decisions for the company. That means they own US$190m worth of shares in the US$300m company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sterling Bancorp (Southfield MI). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Sterling Bancorp (Southfield MI) has 1 warning sign we think you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
