The considerable ownership by individual investors in 1895 Bancorp of Wisconsin indicates that they collectively have a greater say in management and business strategy
46% of the business is held by the top 25 shareholders
If you want to know who really controls 1895 Bancorp of Wisconsin, Inc. (NASDAQ:BCOW), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 27% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And institutions on the other hand have a 16% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
In the chart below, we zoom in on the different ownership groups of 1895 Bancorp of Wisconsin.
NasdaqCM:BCOW Ownership Breakdown November 23rd 2024
What Does The Institutional Ownership Tell Us About 1895 Bancorp of Wisconsin?
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.
We can see that 1895 Bancorp of Wisconsin does have institutional investors; and they hold a good portion of the company's stock. 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 1895 Bancorp of Wisconsin's earnings history below. Of course, the future is what really matters.
NasdaqCM:BCOW Earnings and Revenue Growth November 23rd 2024
1895 Bancorp of Wisconsin is not owned by hedge funds. AllianceBernstein L.P. is currently the company's largest shareholder with 10% of shares outstanding. Pyramax Bank, Fsb 401(K) Savings Plan is the second largest shareholder owning 9.9% of common stock, and The Vanguard Group, Inc. holds about 8.0% of the company stock. In addition, we found that David Ball, the CEO has 0.9% of the shares allocated to their name.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of 1895 Bancorp of Wisconsin
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can report that insiders do own shares in 1895 Bancorp of Wisconsin, Inc.. In their own names, insiders own US$2.7m worth of stock in the US$111m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. 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 27% stake in 1895 Bancorp of Wisconsin. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for 1895 Bancorp of Wisconsin that you should be aware of.
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.
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