With 57% ownership of the shares, Bank of Marin Bancorp (NASDAQ:BMRC) is heavily dominated by institutional owners

In This Article:

Key Insights

  • Significantly high institutional ownership implies Bank of Marin Bancorp's stock price is sensitive to their trading actions

  • 51% of the business is held by the top 21 shareholders

  • Insiders have sold recently

Every investor in Bank of Marin Bancorp (NASDAQ:BMRC) should be aware of the most powerful shareholder groups. With 57% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's delve deeper into each type of owner of Bank of Marin Bancorp, beginning with the chart below.

See our latest analysis for Bank of Marin Bancorp

ownership-breakdown
NasdaqCM:BMRC Ownership Breakdown September 13th 2024

What Does The Institutional Ownership Tell Us About Bank of Marin Bancorp?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Bank of Marin Bancorp. 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. 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 Bank of Marin Bancorp's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NasdaqCM:BMRC Earnings and Revenue Growth September 13th 2024

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Bank of Marin Bancorp. BlackRock, Inc. is currently the largest shareholder, with 10% of shares outstanding. With 5.0% and 4.4% of the shares outstanding respectively, The Vanguard Group, Inc. and Dimensional Fund Advisors LP are the second and third largest shareholders. In addition, we found that Timothy Myers, the CEO has 0.5% of the shares allocated to their name.