Life Buzz News

Despite recent sales, Bank7 Corp. (NASDAQ:BSVN) insiders still hold the largest share with a 56% interest


Despite recent sales, Bank7 Corp. (NASDAQ:BSVN) insiders still hold the largest share with a 56% interest

A total of 4 investors have a majority stake in the company with 53% ownership

Every investor in Bank7 Corp. (NASDAQ:BSVN) should be aware of the most powerful shareholder groups. With 56% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Even though insiders have sold shares recently, the group owns the most numbers of shares in the company.

In the chart below, we zoom in on the different ownership groups of Bank7.

See our latest analysis for Bank7

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Bank7. 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 Bank7'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 Bank7. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Bank7's case, its Top Key Executive, William Haines, is the largest shareholder, holding 19% of shares outstanding. The second and third largest shareholders are Lisa Haines and Julee Thummel, with an equal amount of shares to their name at 15%. Additionally, the company's CEO Thomas Travis directly holds 2.6% of the total shares outstanding.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own the majority of Bank7 Corp.. This means they can collectively make decisions for the company. Given it has a market cap of US$379m, that means they have US$212m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

The general public, who are usually individual investors, hold a 22% stake in Bank7. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Bank7 , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Previous articleNext article

POPULAR CATEGORY

corporate

8029

tech

9135

entertainment

9720

research

4342

misc

10374

wellness

7552

athletics

10218