Could The HomeTrust Bancshares, Inc. (NASDAQ:HTBI) Ownership Structure Tell Us Something Useful?

By
Simply Wall St
Published
February 17, 2021
NasdaqGS:HTBI

Every investor in HomeTrust Bancshares, Inc. (NASDAQ:HTBI) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

HomeTrust Bancshares is a smaller company with a market capitalization of US$372m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about HomeTrust Bancshares.

Check out our latest analysis for HomeTrust Bancshares

ownership-breakdown
NasdaqGS:HTBI Ownership Breakdown February 17th 2021

What Does The Institutional Ownership Tell Us About HomeTrust Bancshares?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

HomeTrust Bancshares already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 HomeTrust Bancshares' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGS:HTBI Earnings and Revenue Growth February 17th 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. HomeTrust Bancshares is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 7.1% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.3% and 5.9%, of the shares outstanding, respectively. In addition, we found that Dana Stonestreet, the CEO has 1.6% of the shares allocated to their name.

A closer look at our ownership figures suggests that the top 16 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of HomeTrust 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.

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 some shares in HomeTrust Bancshares, Inc.. As individuals, the insiders collectively own US$14m worth of the US$372m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, with a 29% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand HomeTrust Bancshares better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for HomeTrust Bancshares (of which 1 makes us a bit uncomfortable!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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