Stock Analysis

Is SmartFinancial, Inc. (NASDAQ:SMBK) Popular Amongst Insiders?

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NasdaqCM:SMBK
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The big shareholder groups in SmartFinancial, Inc. (NASDAQ:SMBK) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

SmartFinancial is not a large company by global standards. It has a market capitalization of US$310m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about SmartFinancial.

View our latest analysis for SmartFinancial

ownership-breakdown
NasdaqCM:SMBK Ownership Breakdown January 26th 2021

What Does The Institutional Ownership Tell Us About SmartFinancial?

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.

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

earnings-and-revenue-growth
NasdaqCM:SMBK Earnings and Revenue Growth January 26th 2021

We note that hedge funds don't have a meaningful investment in SmartFinancial. The company's largest shareholder is BlackRock, Inc., with ownership of 5.1%. Meanwhile, the second and third largest shareholders, hold 4.7% and 3.7%, of the shares outstanding, respectively. In addition, we found that William Carroll, the CEO has 0.9% of the shares allocated to their name.

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 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 SmartFinancial

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. 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.

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.

It seems insiders own a significant proportion of SmartFinancial, Inc.. Insiders have a US$33m stake in this US$310m business. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 48% stake in SmartFinancial. 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. Case in point: We've spotted 2 warning signs for SmartFinancial 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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