TriCo Bancshares (NASDAQ:TCBK) is a favorite amongst institutional investors who own 62%
Key Insights
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Given the large stake in the stock by institutions, TriCo Bancshares' stock price might be vulnerable to their trading decisions
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50% of the business is held by the top 17 shareholders
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
To get a sense of who is truly in control of TriCo Bancshares (NASDAQ:TCBK), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 62% 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).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of TriCo Bancshares.
See our latest analysis for TriCo Bancshares
What Does The Institutional Ownership Tell Us About TriCo Bancshares?
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 TriCo Bancshares does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 TriCo Bancshares' historic earnings and revenue below, but keep in mind there's always more to the story.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. TriCo Bancshares is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is FMR LLC with 9.0% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.9% and 5.5%, of the shares outstanding, respectively. Additionally, the company's CEO Richard Smith directly holds 0.9% of the total shares outstanding.
After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.