In This Article:
Key Insights
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Institutions' substantial holdings in Stock Yards Bancorp implies that they have significant influence over the company's share price
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50% of the business is held by the top 20 shareholders
A look at the shareholders of Stock Yards Bancorp, Inc. (NASDAQ:SYBT) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Last week’s 4.0% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. One-year return to shareholders is currently 51% and last week’s gain was the icing on the cake.
Let's take a closer look to see what the different types of shareholders can tell us about Stock Yards Bancorp.
View our latest analysis for Stock Yards Bancorp
What Does The Institutional Ownership Tell Us About Stock Yards Bancorp?
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.
Stock Yards Bancorp already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Stock Yards Bancorp, (below). Of course, keep in mind that there are other factors to consider, too.
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 Stock Yards Bancorp. The company's largest shareholder is BlackRock, Inc., with ownership of 6.6%. For context, the second largest shareholder holds about 6.3% of the shares outstanding, followed by an ownership of 5.0% by the third-largest shareholder.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 20 shareholders, meaning that no single shareholder has a majority interest in the ownership.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.