U.S. Markets closed
  • S&P 500

    4,202.23
    -30.37 (-0.72%)
     
  • Dow 30

    34,859.56
    +81.80 (+0.24%)
     
  • Nasdaq

    13,443.47
    -308.77 (-2.25%)
     
  • Russell 2000

    2,226.75
    -44.88 (-1.98%)
     
  • Crude Oil

    64.82
    -0.08 (-0.12%)
     
  • Gold

    1,837.10
    +5.80 (+0.32%)
     
  • Silver

    27.45
    -0.01 (-0.04%)
     
  • EUR/USD

    1.2149
    -0.0019 (-0.1579%)
     
  • 10-Yr Bond

    1.6020
    +0.0250 (+1.59%)
     
  • Vix

    18.59
    +1.90 (+11.38%)
     
  • GBP/USD

    1.4135
    +0.0146 (+1.0418%)
     
  • USD/JPY

    108.7920
    +0.2100 (+0.1934%)
     
  • BTC-USD

    54,887.60
    -2,744.08 (-4.76%)
     
  • CMC Crypto 200

    1,516.30
    -44.99 (-2.88%)
     
  • FTSE 100

    7,123.68
    -6.03 (-0.08%)
     
  • Nikkei 225

    29,518.34
    +160.52 (+0.55%)
     

Is Northwest Bancshares, Inc. (NASDAQ:NWBI) Popular Amongst Institutions?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

If you want to know who really controls Northwest Bancshares, Inc. (NASDAQ:NWBI), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$1.6b, Northwest Bancshares is a decent size, so it is probably on the radar of institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Northwest Bancshares.

See our latest analysis for Northwest Bancshares

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Northwest Bancshares?

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.

As you can see, institutional investors have a fair amount of stake in Northwest Bancshares. 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 Northwest Bancshares' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Northwest Bancshares. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 15% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.9% and 6.4%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Northwest Bancshares

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Northwest Bancshares, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$24m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 30% ownership, the general public have some degree of sway over Northwest Bancshares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Northwest Bancshares better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Northwest Bancshares 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.