Key Insights
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Significant insider control over HBT Financial implies vested interests in company growth
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The largest shareholder of the company is Fred Drake with a 55% stake
A look at the shareholders of HBT Financial, Inc. (NASDAQ:HBT) can tell us which group is most powerful. We can see that individual insiders own the lion’s share in the company with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
A quick look at our data suggests that insiders have been buying shares in the company recently. This might indicate that they expect share prices to rise in the near future.
In the chart below, we zoom in on the different ownership groups of HBT Financial.
See our latest analysis for HBT Financial
What Does The Institutional Ownership Tell Us About HBT Financial?
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.
HBT Financial already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 HBT Financial’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Hedge funds don’t have many shares in HBT Financial. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In HBT Financial’s case, its Top Key Executive, Fred Drake, is the largest shareholder, holding 55% of shares outstanding. With 5.7% and 3.1% of the shares outstanding respectively, BlackRock, Inc. and Roger Baker are the second and third largest shareholders. Interestingly, the third-largest shareholder, Roger Baker is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company’s top shareholders.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of HBT Financial
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.
Our most recent data indicates that insiders own the majority of HBT Financial, Inc.. This means they can collectively make decisions for the company. That means they own US$360m worth of shares in the US$602m company. That’s quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 16% stake in HBT Financial. 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:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we’ve spotted with HBT Financial .
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.
