A look at the shareholders of Columbia Banking System, Inc. (NASDAQ: COLB) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that were previously owned by the state tend to have fewer insiders.
With a market capitalization of US $ 3.0 billion, Columbia Banking System is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. In the graphic below, we can see that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Columbia Banking System.
NasdaqGS: Distribution of the COLB property October 4, 2021
What does institutional ownership tell us about the Columbia banking system?
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 businesses to have some institutions listed, especially if they are growing.
Columbia Banking System already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Columbia Banking System’s earnings history below. Of course, the future is what really matters.
NasdaqGS: COLB Earnings and Revenue Growth October 4, 2021
Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. We note that hedge funds do not have a significant investment in Columbia Banking System. BlackRock, Inc. is currently the largest shareholder, with 14% of the shares outstanding. The Vanguard Group, Inc. is the second largest shareholder holding 10% of the common stock, and State Street Global Advisors, Inc. owns approximately 4.9% of the shares of the company.
We further researched and found that 9 of the major shareholders represent around 50% of the register, which implies that in addition to the larger shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider ownership of the Columbia banking system
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our data suggests that insiders own less than 1% of Columbia Banking System, Inc. in their own name. It is a fairly large company, so it would be possible for the board members to have a significant interest in the company, without having a lot of proportional interest. In this case, they own around $ 17 million in stock (at current prices). It’s good to see board members owning shares, but it might be worth checking out if these insiders bought.
General public property
The general public holds 14% of the capital of Columbia Banking System. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Be aware that Columbia Banking System watch 2 warning signs in our investment analysis , you must know…
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last day of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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