Yahoo Finance Despite recent sales, HBT Financial, Inc. (NASDAQ:HBT) insiders still hold the largest share with a 60% interest
Key Insights
Significant insider control over HBT Financial implies vested interests in company growth
Fred Drake owns 55% of the company
Every investor in HBT Financial, Inc. (NASDAQ:HBT) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 60% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
Even though insiders have sold shares recently, the group owns the most numbers of shares in the company.
In the chart below, we zoom in on the different ownership groups of HBT Financial.
Check out our latest analysis for HBT Financial
What Does The Institutional Ownership Tell Us About HBT Financial?
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.
HBT Financial already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 HBT Financial, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in HBT Financial. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In HBT Financial's case, its Top Key Executive, Fred Drake, is the largest shareholder, holding 55% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 5.8% of common stock, and Roger Baker holds about 3.1% of the company stock. Interestingly, the third-largest shareholder, Roger Baker is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
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.
Insider Ownership Of HBT Financial
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Our most recent data indicates that insiders own the majority of HBT Financial, Inc.. This means they can collectively make decisions for the company. Given it has a market cap of US$672m, that means they have US$403m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over HBT Financial. 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. Take risks for example - HBT Financial has 3 warning signs (and 1 which is concerning) we think you should know about.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
