Arrow Financial Corporation's (NASDAQ:AROW) largest shareholders are retail investors with 45% ownership, institutions own 40%

In This Article:

Key Insights

  • Arrow Financial's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public

  • A total of 25 investors have a majority stake in the company with 47% ownership

  • Institutional ownership in Arrow Financial is 40%

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If you want to know who really controls Arrow Financial Corporation (NASDAQ:AROW), then you'll have to look at the makeup of its share registry. With 45% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutions, on the other hand, account for 40% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's delve deeper into each type of owner of Arrow Financial, beginning with the chart below.

Check out our latest analysis for Arrow Financial

ownership-breakdown
NasdaqGS:AROW Ownership Breakdown May 9th 2025

What Does The Institutional Ownership Tell Us About Arrow 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.

As you can see, institutional investors have a fair amount of stake in Arrow Financial. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Arrow Financial's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NasdaqGS:AROW Earnings and Revenue Growth May 9th 2025

Arrow Financial is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Arrow Bank National Association with 11% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.0% and 4.8% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.