Institutions own 41% of American National Bankshares Inc. (NASDAQ:AMNB) shares but individual investors control 55% of the company
If you want to know who really controls American National Bankshares Inc. (NASDAQ:AMNB), 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 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, institutions make up 41% of the company’s shareholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let's delve deeper into each type of owner of American National Bankshares, beginning with the chart below.
Check out our latest analysis for American National Bankshares
What Does The Institutional Ownership Tell Us About American National Bankshares?
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 American National Bankshares does have institutional investors; and they hold a good portion of the company's stock. 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. 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 American National Bankshares' historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in American National Bankshares. BlackRock, Inc. is currently the company's largest shareholder with 6.8% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.6% and 4.2% of the stock. In addition, we found that Jeffrey Haley, the CEO has 0.7% 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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.