With 46% ownership in Nicolet Bankshares, Inc. (NYSE:NIC), institutional investors have a lot riding on the business

Key Insights

• Institutions' substantial holdings in Nicolet Bankshares implies that they have significant influence over the company's share price
• A total of 25 investors have a majority stake in the company with 49% ownership
• Recent sales by insiders

Every investor in Nicolet Bankshares, Inc. (NYSE:NIC) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And things are looking up for institutional investors after the company gained US$77m in market cap last week. The one-year return on investment is currently 30% and last week's gain would have been more than welcomed.

In the chart below, we zoom in on the different ownership groups of Nicolet Bankshares.

Check out our latest analysis for Nicolet Bankshares

What Does The Institutional Ownership Tell Us About Nicolet Bankshares?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Nicolet Bankshares. 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. 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 Nicolet Bankshares' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Nicolet Bankshares. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 7.1% of shares outstanding. With 5.7% and 4.9% of the shares outstanding respectively, Nicolet Bankshares Inc, Asset Management Arm and The Vanguard Group, Inc. are the second and third largest shareholders. Furthermore, CEO Michael Daniels is the owner of 0.6% of the company's shares.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Nicolet Bankshares

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.

It seems insiders own a significant proportion of Nicolet Bankshares, Inc.. Insiders own US$183m worth of shares in the US$1.6b company. That's quite meaningful. 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, who are usually individual investors, hold a 43% stake in Nicolet Bankshares. 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. To that end, you should be aware of the 1 warning sign we've spotted with Nicolet Bankshares .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.