The large shareholder groups of Columbia Banking System, Inc. (NASDAQ: COLB) have power over the business. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. 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. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Columbia Banking System.
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.
As you can see, institutional investors have a large stake in Columbia Banking System. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Columbia Banking System’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. Hedge funds don’t have a lot of stock in Columbia Banking System. BlackRock, Inc. is currently the largest shareholder, with 14% of the shares outstanding. With 10% and 4.9% of shares outstanding, respectively, The Vanguard Group, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders.
We also observed that the top 9 shareholders make up more than half of the share register, with a few smaller shareholders to some extent to balance the interests of the larger ones.
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
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Columbia Banking System, Inc. It’s a large company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own $ 17 million in shares. Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders bought or sold.
General public property
The general public holds 14% of the capital of Columbia Banking System. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Concrete example: we have spotted 2 warning signs for Columbia Banking System you must be aware.
But finally it’s the future, not the past, which will determine the success of the owners of this business. That is why we believe it is advisable to examine this free report showing whether analysts predict a better 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 date 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.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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