Byline Bancorp, Inc.'s (NYSE:BY) high institutional ownership speaks for itself as stock continues to impress, up 5.0% over last week

Key Insights

• Institutions' substantial holdings in Byline Bancorp implies that they have significant influence over the company's share price
• 52% of the business is held by the top 5 shareholders
• Recent sales by insiders

To get a sense of who is truly in control of Byline Bancorp, Inc. (NYSE:BY), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 43% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And as as result, institutional investors reaped the most rewards after the company's stock price gained 5.0% last week. One-year return to shareholders is currently 36% and last week’s gain was the icing on the cake.

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

View our latest analysis for Byline Bancorp

What Does The Institutional Ownership Tell Us About Byline Bancorp?

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.

Byline Bancorp 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 Byline Bancorp's earnings history below. Of course, the future is what really matters.

Byline Bancorp is not owned by hedge funds. The company's largest shareholder is Antonio Del Valle Perochena, with ownership of 27%. Meanwhile, the second and third largest shareholders, hold 9.7% and 6.5%, of the shares outstanding, respectively. In addition, we found that Roberto Herencia, the CEO has 0.8% of the shares allocated to their name.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 Byline Bancorp

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. 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.

Our information suggests that insiders maintain a significant holding in Byline Bancorp, Inc.. It is very interesting to see that insiders have a meaningful US$394m stake in this US$1.2b business. 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 14% 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.

Private Company Ownership

We can see that Private Companies own 9.7%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Byline Bancorp better, we need to consider many other factors. For example, we've discovered 1 warning sign for Byline Bancorp that you should be aware of before investing here.

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.