U.S. Markets close in 3 hrs 57 mins
  • S&P 500

    3,914.56
    +2.82 (+0.07%)
     
  • Dow 30

    31,535.17
    +34.49 (+0.11%)
     
  • Nasdaq

    11,569.26
    -38.36 (-0.33%)
     
  • Russell 2000

    1,780.47
    +14.74 (+0.83%)
     
  • Crude Oil

    109.16
    +1.54 (+1.43%)
     
  • Gold

    1,826.20
    -4.10 (-0.22%)
     
  • Silver

    21.27
    +0.15 (+0.71%)
     
  • EUR/USD

    1.0604
    +0.0046 (+0.4348%)
     
  • 10-Yr Bond

    3.1880
    +0.0630 (+2.02%)
     
  • Vix

    27.41
    +0.18 (+0.66%)
     
  • GBP/USD

    1.2302
    +0.0032 (+0.2633%)
     
  • USD/JPY

    135.2620
    +0.0920 (+0.0681%)
     
  • BTC-USD

    20,749.74
    -573.79 (-2.69%)
     
  • CMC Crypto 200

    452.21
    -9.58 (-2.08%)
     
  • FTSE 100

    7,258.32
    +49.51 (+0.69%)
     
  • Nikkei 225

    26,871.27
    +379.30 (+1.43%)
     

What Type Of Shareholders Make Up RBB Bancorp's (NASDAQ:RBB) Share Registry?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

If you want to know who really controls RBB Bancorp (NASDAQ:RBB), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of US$411m, RBB Bancorp is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows 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 RBB Bancorp.

View our latest analysis for RBB Bancorp

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About RBB Bancorp?

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.

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

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

Our data indicates that hedge funds own 6.1% of RBB Bancorp. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data suggests that Peter M. Chang, who is also the company's Secretary, holds the most number of shares at 7.4%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 6.1% of the shares outstanding, followed by an ownership of 5.2% by the third-largest shareholder.

After doing some more digging, we found that the top 21 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of RBB Bancorp

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of RBB Bancorp. Insiders have a US$103m stake in this US$411m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand RBB Bancorp better, we need to consider many other factors. For example, we've discovered 2 warning signs for RBB Bancorp that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.