key insights
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Institutional investors' significant holdings in USCB Financial Holdings means they have a significant influence on the company's share price.
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52% of the business is owned by the top 3 shareholders
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What Insiders Recently Bought
A look at the shareholders of USCB Financial Holdings, Inc. (NASDAQ:USCB) can tell us which group is the most powerful. We can see that institutional investors hold the majority, accounting for his 56% ownership in the company. In other words, the group faces the greatest upside potential (or downside risk).
Because institutional investors have access to large amounts of capital, their market trends tend to be closely monitored by retail and individual investors. Therefore, a significant portion of institutional funds invested in a company is usually a huge vote of confidence in the company's future.
Let's take a closer look to see what the different types of shareholders can tell us about USCB Financial Holdings.
Check out our latest analysis for USCB Financial Holdings.
What does institutional ownership indicate about USCB Financial Holdings?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in USCB Financial Holdings. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They also sometimes misunderstand. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see USCB Financial Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.
Institutional investors own over 50% of a company, so when they come together they can strongly influence board decisions. Our data shows that hedge funds own 6.6% of USCB Financial Holdings. It catches my attention because hedge funds sometimes try to influence management or bring about changes that create short-term value for shareholders. The company's largest shareholder is Pulliam Capital, with ownership of 23%. For context, the second largest shareholder holds about 23% of the shares outstanding, followed by an ownership of 6.6% by the third largest shareholder.
Upon further investigation, we found that the top 3 shareholders together control more than half of the company's shares, suggesting that they have significant power to influence the company's decisions.
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. Quite a few analysts cover this stock, so you can find out its expected growth quite easily.
Insider ownership in USCB Financial Holdings
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data shows that insiders own some shares in USCB Financial Holdings, Inc. The insider personally owns US$3.2m worth of his company, with a total value of US$201m. Some might say this shows alignment of interests between shareholders and the board. But it might be worth checking if these insiders are selling.
Open to the public
With a 13% ownership interest, the general public, which is primarily made up of retail investors, has some influence over USCB Financial Holdings. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
private equity ownership
Private equity firms own 23% of USCB Financial Holdings. This suggests that they can influence important policy decisions. Some investors may be encouraged by this, as private equity may be able to encourage strategies that help the market recognize a company's value. Alternatively, those holders may withdraw from their investment after the initial public offering.
Next steps:
It's always worth thinking about the different groups who own shares in a company. But to understand USCB Financial Holdings better, you need to consider many other factors. For example, consider risk.Every company has them and we discovered that 1 warning sign for USCB Financial Holdings you should know about.
If you want to know what analysts are predicting in terms of future growth, don't miss this free Report on analyst forecasts.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
