Significantly high institutional ownership implies Citizens Community Bancorp's stock price is sensitive to their trading actions
A total of 14 investors have a majority stake in the company with 51% ownership
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
If you want to know who really controls Citizens Community Bancorp, Inc. (NASDAQ:CZWI), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 41% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of Citizens Community Bancorp, beginning with the chart below.
NasdaqGM:CZWI Ownership Breakdown December 31st 2024
What Does The Institutional Ownership Tell Us About Citizens Community Bancorp?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Citizens Community Bancorp does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Citizens Community Bancorp's earnings history below. Of course, the future is what really matters.
NasdaqGM:CZWI Earnings and Revenue Growth December 31st 2024
It looks like hedge funds own 8.2% of Citizens Community Bancorp shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is AllianceBernstein L.P. with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.2% and 6.1% of the stock. Furthermore, CEO Stephen Bianchi is the owner of 1.2% of the company's shares.
A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Citizens Community Bancorp
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership 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 in some circumstances.
We can see that insiders own shares in Citizens Community Bancorp, Inc.. As individuals, the insiders collectively own US$8.0m worth of the US$165m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
General Public Ownership
With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Citizens Community Bancorp. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With a stake of 5.6%, private equity firms could influence the Citizens Community Bancorp board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Citizens Community Bancorp better, we need to consider many other factors. For instance, we've identified 1 warning sign for Citizens Community Bancorp that you should be aware of.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with 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 only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
