U.S. Markets open in 5 hrs 37 mins
  • S&P Futures

    3,715.75
    +6.75 (+0.18%)
     
  • Dow Futures

    29,722.00
    +53.00 (+0.18%)
     
  • Nasdaq Futures

    11,407.75
    +31.00 (+0.27%)
     
  • Russell 2000 Futures

    1,689.90
    +3.80 (+0.23%)
     
  • Crude Oil

    78.57
    -0.17 (-0.22%)
     
  • Gold

    1,653.80
    -1.80 (-0.11%)
     
  • Silver

    18.70
    -0.21 (-1.11%)
     
  • EUR/USD

    0.9673
    -0.0015 (-0.1548%)
     
  • 10-Yr Bond

    3.6970
    0.0000 (0.00%)
     
  • Vix

    31.37
    +4.02 (+14.70%)
     
  • GBP/USD

    1.0689
    -0.0168 (-1.5466%)
     
  • USD/JPY

    143.9260
    +0.6060 (+0.4228%)
     
  • BTC-USD

    18,900.34
    -171.39 (-0.90%)
     
  • CMC Crypto 200

    432.97
    -11.57 (-2.60%)
     
  • FTSE 100

    7,038.28
    +19.68 (+0.28%)
     
  • Nikkei 225

    26,431.55
    -722.28 (-2.66%)
     

Orrstown Financial Services, Inc.'s (NASDAQ:ORRF) top owners are individual investors with 48% stake, while45% is held by institutions

·4 min read

A look at the shareholders of Orrstown Financial Services, Inc. (NASDAQ:ORRF) can tell us which group is most powerful. With 48% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutions, on the other hand, account for 45% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's delve deeper into each type of owner of Orrstown Financial Services, beginning with the chart below.

See our latest analysis for Orrstown Financial Services

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Orrstown Financial Services?

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 Orrstown Financial Services. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Orrstown Financial Services' earnings history below. Of course, the future is what really matters.

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

We note that hedge funds don't have a meaningful investment in Orrstown Financial Services. Our data shows that BlackRock, Inc. is the largest shareholder with 6.7% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 4.9% of common stock, and FMR LLC holds about 4.2% of the company stock. Furthermore, CEO Thomas Quinn is the owner of 0.5% of the company's shares.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Orrstown Financial Services

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Orrstown Financial Services, Inc.. It has a market capitalization of just US$270m, and insiders have US$13m worth of shares, in their own names. 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 48% stake in Orrstown Financial Services. 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. For instance, we've identified 2 warning signs for Orrstown Financial Services that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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 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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here