PCB Bancorp's (NASDAQ:PCB) largest shareholders are individual investors with 39% ownership, institutions own 35%
Key Insights
-
Significant control over PCB Bancorp by individual investors implies that the general public has more power to influence management and governance-related decisions
-
The top 20 shareholders own 50% of the company
If you want to know who really controls PCB Bancorp (NASDAQ:PCB), 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 39% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 35% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's take a closer look to see what the different types of shareholders can tell us about PCB Bancorp.
View our latest analysis for PCB Bancorp
What Does The Institutional Ownership Tell Us About PCB Bancorp?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that PCB Bancorp does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 PCB Bancorp'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 PCB Bancorp. The company's largest shareholder is Sang Lee, with ownership of 9.9%. Meanwhile, the second and third largest shareholders, hold 5.5% and 4.5%, of the shares outstanding, respectively. In addition, we found that Henry Kim, the CEO has 1.4% of the shares allocated to their name.
A closer look at our ownership figures suggests that the top 20 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.