After losing 19% in the past year, Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) institutional owners must be relieved by the recent gain
Key Insights
Given the large stake in the stock by institutions, Northfield Bancorp (Staten Island NY)'s stock price might be vulnerable to their trading decisions
50% of the business is held by the top 11 shareholders
A look at the shareholders of Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) can tell us which group is most powerful. With 65% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Last week's US$59m market cap gain would probably be appreciated by institutional investors, especially after a year of 19% losses.
Let's take a closer look to see what the different types of shareholders can tell us about Northfield Bancorp (Staten Island NY).
Check out our latest analysis for Northfield Bancorp (Staten Island NY)
What Does The Institutional Ownership Tell Us About Northfield Bancorp (Staten Island NY)?
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.
Northfield Bancorp (Staten Island NY) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Northfield Bancorp (Staten Island NY)'s historic earnings and revenue below, but keep in mind there's always more to the story.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Northfield Bancorp (Staten Island NY) is not owned by hedge funds. The company's largest shareholder is BlackRock, Inc., with ownership of 14%. With 7.9% and 7.8% of the shares outstanding respectively, The Vanguard Group, Inc. and Northfield Bank, Employee Stock Ownership Plan Trust are the second and third largest shareholders. Furthermore, CEO Steven Klein is the owner of 1.2% of the company's shares.
A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Northfield Bancorp (Staten Island NY)
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can report that insiders do own shares in Northfield Bancorp, Inc. (Staten Island, NY). In their own names, insiders own US$22m worth of stock in the US$497m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, who are usually individual investors, hold a 31% stake in Northfield Bancorp (Staten Island NY). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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 - Northfield Bancorp (Staten Island NY) 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.
