key insights
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A financial institution's large holdings in corporate financial services means it has a large influence on a company's stock price
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A total of 16 investors hold a majority stake in the company, holding 51% of the ownership.
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Insiders recently sold
If you want to know who really controls Enterprise Financial Services Corp (NASDAQ:EFSC), you'll have to take a look at the makeup of its share registry. With a 74% stake, institutional investors hold the largest stake in the company. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Institutional investors will likely welcome the stock's 4.9% rise last week, after a year-long decline of 23%, as a sign that returns are starting to trend higher.
Let's take a closer look to see what the different types of shareholders can tell us about Enterprise Financial Services.
See our latest analysis for Enterprise Financial Services
What does institutional ownership tell us about corporate financial services?
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.
We can see that Enterprise Financial Services has institutional investors. And they own a significant portion of the company's stock. 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 make mistakes. 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 Enterprise Financial Services' historic earnings and revenue below, but keep in mind there's always more to the story.
Institutional investors own more than half of the outstanding shares, so the board will need to pay attention to their preferences. Enterprise Financial Services is not owned by hedge funds. According to our data, BlackRock, Inc. is the largest shareholder with his 10% of outstanding shares. Meanwhile, the second and third largest shareholders hold 6.1% and 5.4% of the shares outstanding, respectively.
If we take a closer look at our ownership figures, we can see that the top 16 shareholders have a combined ownership of 51%, implying that no single shareholder has a majority.
While researching 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 significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.
Insider ownership in corporate financial services
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. 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.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
We can see that insiders own shares in Enterprise Financial Services Corp. Insiders say he holds significant shares worth US$67m. Most people would consider this a very positive thing. If you want to know more about insider alignment issues, click here to see if insiders have been buying or selling.
Open to the public
The general public (usually retail investors) owns 22% of Enterprise Financial Services' shares. While this group doesn't necessarily call the shots, it can certainly have a big influence on how the company is run.
Next steps:
It's always worth thinking about the different groups who own shares in a company. However, to better understand enterprise financial services, many other factors need to be considered.Taking risk as an example, Enterprise Financial Services 1 warning sign I think you should know.
after all the future is most important.You can access this free A report on analyst forecasts for a company.
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.