Individual investors who hold 40% of First Citizens BancShares, Inc. (NASDAQ:FCNC.A) gained 9.4%, institutions profited as well

By
Simply Wall St
Published
March 16, 2022
NasdaqGS:FCNC.A
Source: Shutterstock

If you want to know who really controls First Citizens BancShares, Inc. (NASDAQ:FCNC.A), 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 40% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 9.4% increase in the stock price last week, individual investors profited the most, but institutions who own 40% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about First Citizens BancShares.

View our latest analysis for First Citizens BancShares

ownership-breakdown
NasdaqGS:FCNC.A Ownership Breakdown March 16th 2022

What Does The Institutional Ownership Tell Us About First Citizens 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 First Citizens BancShares does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 First Citizens BancShares, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NasdaqGS:FCNC.A Earnings and Revenue Growth March 16th 2022

Hedge funds don't have many shares in First Citizens BancShares. Looking at our data, we can see that the largest shareholder is the CEO Frank Holding with 5.6% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.7% and 4.5% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of First Citizens BancShares

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of First Citizens BancShares, Inc.. It has a market capitalization of just US$12b, and insiders have US$2.2b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for First Citizens BancShares you should be aware of.

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.

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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