What Percentage Of Provident Financial Holdings, Inc. (NASDAQ:PROV) Shares Do Insiders Own?
Every investor in Provident Financial Holdings, Inc. (NASDAQ: PROV) should know the most powerful groups of shareholders. Insiders often own a large portion of younger, smaller companies, while large companies tend to have institutions as shareholders. I really like to see at least a little bit of inside ownership. As Charlie Munger said, “Show me the incentive and I'll show you the result.
With a market cap of $ 100 million, Provident Financial Holdings is a small-cap stock that many institutional investors may not be familiar with. In the graphic below we can see that institutional investors have bought into the company. Let's take a closer look at what the different types of shareholders can say about Provident Financial Holdings.
Check out our latest analysis for Provident Financial Holdings
Division of ownership
What does institutional ownership tell us about Provident Financial Holdings?
Many institutions measure their performance against an index that approximates the local market. Therefore, they tend to pay more attention to companies included in major indices.
Provident Financial Holdings already has institutes in the share register. Indeed, they have a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely on this fact alone, as institutions sometimes make bad investments, as everyone does. It's not uncommon for a large stock price to fall when two large institutional investors are trying to sell a stock at the same time. It is therefore worthwhile to check the earnings trend of Provident Financial Holdings (see below). Of course, keep in mind that there are other factors to consider as well.
Profit and sales growth
With institutional investors owning more than half of the shares in issue, the board of directors is likely to need to be mindful of their preferences. It looks like hedge funds own 5.6% of Provident Financial Holdings' stock. This gets my attention because hedge funds sometimes seek to influence management or make changes that add value to shareholders in the short term. Based on our data, we can see that the largest shareholder is Provident Savings Bank, the FSB Employee Stock Ownership Plan and Trust with 11% of the shares issued. In this context, the second largest shareholder holds around 8.3% of the shares issued, followed by the third largest shareholder of 7.7%. Additionally, we found that Craig Blunden, the CEO, attributed 2.9% of the shares to his name
We also found that the top 8 shareholders make up more than half of the share register, with some smaller shareholders balancing the interests of the larger ones to some extent.
While studying a company's institutional ownership can add value to your research, researching analyst recommendations to get a deeper understanding of a stock's expected performance is also a good practice. There are a fair number of analysts looking into the stock. Therefore, it can be helpful to find out your overall view for the future.
Provident Financial Holdings insider owned
The definition of an insider can vary slightly between countries, but the board members always count. Management ultimately replies to the board. However, it's not uncommon for managers to be board members, especially if they're founders or CEOs.
Most consider insider ownership to be a positive as it can indicate that the board of directors is well aligned with other shareholders. In some cases, however, too much power is centered on this group.
Our latest data shows that insiders own a fair stake in Provident Financial Holdings, Inc. Insiders have $ 11 million in this $ 100 million deal. It's great to see Insiders get so invested in the business. It might be worth checking out if these insiders bought recently.
General public property
The general public has an 18% stake in Provident Financial Holdings. While this size of property may not be sufficient to sway a political decision in their favor, they can still have a collective influence on company policies.
It is always worth thinking about the different groups that own shares in a company. However, to better understand Provident Financial Holdings we need to consider many other factors. Note that Provident Financial Holdings shows 1 warning sign in our investment analysis. You should know about ...
If you'd rather find out what analysts are predicting for future growth, don't miss this free analyst forecast report.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the twelve month period ending on the last date of the month in which the financial statements are dated. This may not match the figures in the annual report for the full year.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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