Is Simmons First National Corporation (NASDAQ:SFNC) popular among institutions?
The large shareholder groups of Simmons First National Corporation (NASDAQ:SFNC) have power over the company. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. We also tend to see a decline in insider participation in companies that were previously public.
Simmons First National is a pretty big company. It has a market capitalization of US$3.6 billion. Normally, institutions own a significant share of a business of this size. Looking at our ownership group data (below), it appears that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Simmons First National.
Check out our latest analysis for Simmons First National
What does institutional ownership tell us about Simmons First National?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
As you can see, institutional investors own a sizable share of Simmons First National. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Simmons First National’s past revenue trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. We note that hedge funds have no significant investment in Simmons First National. The company’s largest shareholder is BlackRock, Inc., with a 14% stake. The Vanguard Group, Inc. is the second largest shareholder holding 10% of the common stock, and Dimensional Fund Advisors LP owns approximately 5.6% of the company’s stock.
After digging a little deeper, we found that the top 11 held a combined 50% stake in the company, suggesting that no single shareholder has significant control over the company.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.
Insider ownership of Simmons First National
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Our most recent data indicates that insiders hold shares of Simmons First National Corporation. It’s a pretty big company, so it’s generally a positive to see a potentially meaningful alignment. In this case, they own about $50 million worth of stock (at today’s prices). It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.
General public property
The general public, who are usually individual investors, hold a 29% stake in Simmons First National. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
It is always useful to think about the different groups that own shares in a company. But to better understand Simmons First National, we need to consider many other factors. For example, we found 2 warning signs for Simmons First National which you should be aware of before investing here.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.