Richmond Mutual Bancorporation's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
37% of the business is held by the top 25 shareholders
To get a sense of who is truly in control of Richmond Mutual Bancorporation, Inc. (NASDAQ:RMBI), it is important to understand the ownership structure of the business. With 60% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, institutions make up 24% 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 Richmond Mutual Bancorporation, beginning with the chart below.
NasdaqCM:RMBI Ownership Breakdown February 20th 2025
What Does The Institutional Ownership Tell Us About Richmond Mutual Bancorporation?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Richmond Mutual Bancorporation 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. 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 Richmond Mutual Bancorporation's historic earnings and revenue below, but keep in mind there's always more to the story.
NasdaqCM:RMBI Earnings and Revenue Growth February 20th 2025
Hedge funds don't have many shares in Richmond Mutual Bancorporation. Richmond Mutual Bancorporation, Inc. Employee Stock Ownership Plan is currently the company's largest shareholder with 10% of shares outstanding. With 7.1% and 5.9% of the shares outstanding respectively, AllianceBernstein L.P. and The Vanguard Group, Inc. are the second and third largest shareholders. Furthermore, CEO Garry Kleer is the owner of 1.2% of the company's shares.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Richmond Mutual Bancorporation
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders own shares in Richmond Mutual Bancorporation, Inc.. As individuals, the insiders collectively own US$7.3m worth of the US$139m 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, mostly comprising of individual investors, collectively holds 60% of Richmond Mutual Bancorporation shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
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.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
