A fantastic week for QCR Holdings, Inc.'s (NASDAQ:QCRH) 68% institutional owners, one-year returns continue to impress

Key Insights

• Given the large stake in the stock by institutions, QCR Holdings' stock price might be vulnerable to their trading decisions
• The top 19 shareholders own 51% of the company
• Insiders have bought recently

To get a sense of who is truly in control of QCR Holdings, Inc. (NASDAQ:QCRH), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 68% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for institutional investors after the company gained US$57m in market cap last week. The one-year return on investment is currently 4.0% and last week's gain would have been more than welcomed.

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

Check out our latest analysis for QCR Holdings

What Does The Institutional Ownership Tell Us About QCR Holdings?

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.

QCR Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 QCR Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in QCR Holdings. BlackRock, Inc. is currently the company's largest shareholder with 8.1% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.9% and 5.4%, of the shares outstanding, respectively. Additionally, the company's CEO Larry Helling directly holds 0.6% of the total shares outstanding.

After doing some more digging, we found that the top 19 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of QCR Holdings

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 QCR Holdings, Inc.. As individuals, the insiders collectively own US$34m worth of the US$853m 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

The general public-- including retail investors -- own 28% stake in the company, and hence can't 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 QCR Holdings better, we need to consider many other factors. Take risks for example - QCR Holdings has 1 warning sign we think you should be aware of.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.