Here's What Community Bankers Trust Corporation's (NASDAQ:ESXB) Shareholder Ownership Structure Looks Like

By
Simply Wall St
Published
February 02, 2021
NasdaqCM:ESXB

If you want to know who really controls Community Bankers Trust Corporation (NASDAQ:ESXB), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

Community Bankers Trust is a smaller company with a market capitalization of US$163m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Community Bankers Trust.

Check out our latest analysis for Community Bankers Trust

ownership-breakdown
NasdaqCM:ESXB Ownership Breakdown February 2nd 2021

What Does The Institutional Ownership Tell Us About Community Bankers Trust?

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.

We can see that Community Bankers Trust 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Community Bankers Trust, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqCM:ESXB Earnings and Revenue Growth February 2nd 2021

Our data indicates that hedge funds own 6.0% of Community Bankers Trust. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Maltese Capital Management, LLC is currently the largest shareholder, with 6.0% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 5.4% of common stock, and Fourthstone LLC holds about 4.6% of the company stock. Furthermore, CEO Rex Smith is the owner of 0.6% of the company's shares.

A closer look at our ownership figures suggests that the top 24 shareholders have a combined ownership of 50% implying that 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 Community Bankers Trust

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Community Bankers Trust Corporation. As individuals, the insiders collectively own US$6.3m worth of the US$163m company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 41% ownership, the general public have some degree of sway over Community Bankers Trust. 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. To that end, you should learn about the 3 warning signs we've spotted with Community Bankers Trust (including 1 which is significant) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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