Plumas Bancorp (NASDAQ:PLBC) most popular amongst individual investors who own 44% of the shares, institutions hold 44%
In This Article:
Key Insights
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Plumas Bancorp's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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50% of the business is held by the top 24 shareholders
To get a sense of who is truly in control of Plumas Bancorp (NASDAQ:PLBC), it is important to understand the ownership structure of the business. With 44% stake, individual 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).
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And institutions on the other hand have a 44% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's take a closer look to see what the different types of shareholders can tell us about Plumas Bancorp.
View our latest analysis for Plumas Bancorp
What Does The Institutional Ownership Tell Us About Plumas 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 Plumas 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. 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 Plumas Bancorp's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Plumas Bancorp. FMR LLC is currently the largest shareholder, with 9.0% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.1% and 5.2% of the stock. In addition, we found that Andrew Ryback, the CEO has 1.5% of the shares allocated to their name.
After doing some more digging, we found that the top 24 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.