key insights
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Given that institutional investors have significant stakes in the stock, Investors Title's stock price may be sensitive to institutional trading decisions.
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Top 9 shareholders own 52% of the company
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Insider ownership in Investors Title is 22%
Every investor in Investors Title Company (NASDAQ:ITIC) should be aware of the most powerful shareholder groups. We can see that institutional investors hold a 45% stake in the company, making them a majority part of the company. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Because institutional investors have vast resources and liquidity, their investment decisions tend to have significant influence, especially for 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 at what the different types of shareholders can tell us about investor title.
See our latest analysis for Investor Title.
What does institutional ownership tell us about investor rights?
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 stock in Investors Title. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. 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 Investors Title's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Investors Title. Markel-Gayner Asset Management Corporation is currently the company's largest shareholder with his 11% of outstanding shares. Meanwhile, the second and third largest shareholders hold 10% and 5.7% of the shares outstanding, respectively. The second largest shareholder, James Fine, also happens to hold the title of CEO.
We also observed that the top 9 shareholders account for more than half of the shareholder registry, with a few small shareholders balancing the interests of the large shareholders to some extent.
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 is currently no analyst coverage of this stock, so this company is unlikely to be widely held.
Insider Investor Ownership Title
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.
Insider ownership is positive when it signals leaders 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 depending on the situation.
It appears that insiders own a significant portion of Investors Title Company. The company has a market capitalization of just US$294m, and insiders have US$65m worth of shares in their own names. This may suggest that the founders still own a large number of shares. Click here to see if they are buying or selling.
Open to the public
With ownership of 27%, the general public, which is primarily made up of retail investors, has some influence over investor rights. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Private company ownership
Our data shows that Private companies own 5.0% of the company's shares. It's hard to draw any conclusions from this fact alone, so it's worth finding out who owns these private companies. Insiders and other parties may have an interest in the stock of a public company through another private company.
Next steps:
It's always worth thinking about the different groups who own shares in a company. However, to better understand investor rights, many other factors need to be considered. Taking risks as an example, the investor title is: 1 warning sign I think you should know.
of course, You may find a great investment if you look elsewhere. So take a look at this free List of interesting companies.
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.
