Stock Analysis

What Type Of Shareholders Own The Most Number of Civista Bancshares, Inc. (NASDAQ:CIVB) Shares?

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NasdaqCM:CIVB
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The big shareholder groups in Civista Bancshares, Inc. (NASDAQ:CIVB) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Civista Bancshares is not a large company by global standards. It has a market capitalization of US$336m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Civista Bancshares.

See our latest analysis for Civista Bancshares

ownership-breakdown
NasdaqCM:CIVB Ownership Breakdown March 5th 2021

What Does The Institutional Ownership Tell Us About Civista 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 Civista Bancshares 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Civista Bancshares' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqCM:CIVB Earnings and Revenue Growth March 5th 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Civista Bancshares is not owned by hedge funds. BlackRock, Inc. is currently the largest shareholder, with 7.6% of shares outstanding. With 4.9% and 3.9% of the shares outstanding respectively, The Vanguard Group, Inc. and Wellington Management Group LLP are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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.

Insider Ownership Of Civista Bancshares

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Civista Bancshares, Inc.. In their own names, insiders own US$17m worth of stock in the US$336m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 40% ownership, the general public have some degree of sway over Civista Bancshares. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Civista Bancshares is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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