Key Insights
With a high level of institutional ownership, MVB Financial’s share price may be affected by their trading decisions.
50% of the business is owned by the top 22 shareholders
Analyst forecasts and ownership data help give you a strong idea of the business’s prospects.
A look at the shareholders of MVB Financial Corp. ( NASDAQ:MVBF ) can tell us which group is most powerful: with 51% of the shares held, institutional investors own the vast majority of the company’s shares, meaning they have the greatest upside potential (or downside risk).
Institutional investors tend to wield considerable influence, especially among retail investors, due to the vast amounts of capital and research power they have at their disposal, so having a large amount of institutional capital invested in a company is often seen as a desirable characteristic.
In the chart below, we zoom in on the different ownership groups at MVB Financial.
Check out our latest analysis for MVB Financial
Ownership Breakdown
What does institutional ownership tell us about MVB Financial?
Institutional investors commonly compare their own company’s returns to the returns of a commonly tracked index, so they typically consider buying large companies that are included in the relevant benchmark index.
We can see that MVB Financial has institutional investors who own a significant portion of the company’s shares. This means that the analysts working for these institutions have looked at the stock and they like it. However, just like everyone else, it’s possible that the analysts are wrong. When multiple institutions own a stock, there’s always a risk that you may end up in a ‘crowded trade’. If such a trade goes wrong, multiple parties could compete to sell shares fast. This risk is higher in companies without a history of growth. You can see MVB Financial’s historic earnings and revenue below, but remember there’s always more to the story.
Revenue and income growth
Institutional investors own more than half of the shares outstanding, so the board will likely need to take their preferences into consideration. Hedge funds don’t have a significant stake in MVB Financial. The company’s largest shareholder is Wellington Management Group LLP, owning 10%. Times Square Capital Management LLC is the second largest shareholder with 7.3% of common stock, while BlackRock Inc. holds about 6.7%. Additionally, CEO Larry Mazza owns 4.9% of the company’s shares.
A look at the shareholder registry shows that 50% of the ownership is controlled by the top 22 shareholders, meaning no single shareholder holds a majority of the ownership.
The story continues
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing their forecasts as well.
Insider Ownership of MVB Financial
While the precise definition of an insider can be subjective, almost everyone considers company directors to be insiders. While a company’s management runs the business, the CEO is accountable to the board, even if he or she is a board member.
Insider ownership can be a positive if it signals management 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, which can be a negative in some circumstances.
Our most recent data indicates that insiders own some shares in MVB Financial Corp. The company has a market capitalization of just US$235m, and insiders own US$20m worth of shares in their own names. It’s good to see some insider investment, but it might be worth checking if those insiders have actually been buying.
General public property
The general public (including retail investors) own 41% of the company’s shares, so it can’t be easily ignored, and while this group doesn’t necessarily have the decision-making power, it certainly has 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 MVB Financial better, there are many other factors to consider.
I like to dig deeper into how a company has performed in the past, and you can see past revenue and profit in this detailed graph.
Ultimately, the future is what matters most, so you can access this free report on analyst forecasts for the company.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
Have something to say about this article? If you have any questions about the content, please contact us directly or email us at editorial-team@simplywallst.com.
