Yahoo Finance Princeton Bancorp, Inc. (NASDAQ:BPRN) is definitely on the radar of institutional investors who own 43% of the company
Key Insights
Institutions' substantial holdings in Princeton Bancorp implies that they have significant influence over the company's share price
A total of 10 investors have a majority stake in the company with 50% ownership
To get a sense of who is truly in control of Princeton Bancorp, Inc. (NASDAQ:BPRN), it is important to understand the ownership structure of the business. With 43% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of Princeton Bancorp, beginning with the chart below.
View our latest analysis for Princeton Bancorp
What Does The Institutional Ownership Tell Us About Princeton Bancorp?
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 Princeton Bancorp does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Princeton Bancorp's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Princeton Bancorp. Looking at our data, we can see that the largest shareholder is Martin Tuchman with 11% of shares outstanding. With 7.9% and 5.9% of the shares outstanding respectively, AllianceBernstein L.P. and Andrew Chon are the second and third largest shareholders. Furthermore, CEO Edward Dietzler is the owner of 0.7% of the company's shares.
On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Princeton Bancorp
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own a reasonable proportion of Princeton Bancorp, Inc.. Insiders own US$50m worth of shares in the US$193m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 31% 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 Princeton Bancorp better, we need to consider many other factors. Take risks for example - Princeton Bancorp has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
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.
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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.
