Could Seacoast Banking Corporation of Florida’s (NASDAQ:SBCF) Investor Composition Influence The Stock Price?

If you want to know who really controls Seacoast Banking Corporation of Florida (NASDAQ:SBCF), then you’ll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.

Seacoast Banking of Florida isn’t enormous, but it’s not particularly small either. It has a market capitalization of US$1.5b, which means it would generally expect to see some institutions on the share registry. 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 SBCF.

Check out our latest analysis for Seacoast Banking of Florida

NasdaqGS:SBCF Ownership Summary, March 15th 2019
NasdaqGS:SBCF Ownership Summary, March 15th 2019

What Does The Institutional Ownership Tell Us About Seacoast Banking of Florida?

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 Seacoast Banking of Florida does have institutional investors; and they hold 84% of the 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 Seacoast Banking of Florida’s earnings history, below. Of course, the future is what really matters.

NasdaqGS:SBCF Income Statement, March 15th 2019
NasdaqGS:SBCF Income Statement, March 15th 2019

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Seacoast Banking of Florida is not owned by hedge funds. 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 Seacoast Banking of Florida

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

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.

I can report that insiders do own shares in Seacoast Banking Corporation of Florida. The insiders have a meaningful stake worth US$28m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 14% ownership, the general public have some degree of sway over SBCF. 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:

It’s always worth thinking about the different groups who own shares in a company. But to understand Seacoast Banking of Florida better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free .

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.