With 49% ownership, insiders at American Coastal Insurance Corporation (NASDAQ:ACIC) are pretty optimistic and have been buying recently
In This Article:
Key Insights
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Insiders appear to have a vested interest in American Coastal Insurance's growth, as seen by their sizeable ownership
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The top 6 shareholders own 51% of the company
Every investor in American Coastal Insurance Corporation (NASDAQ:ACIC) should be aware of the most powerful shareholder groups. With 49% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
It's interesting to note that insiders have been buying shares recently. This might indicate that they expect share prices to rise in the near future.
Let's delve deeper into each type of owner of American Coastal Insurance, beginning with the chart below.
See our latest analysis for American Coastal Insurance
What Does The Institutional Ownership Tell Us About American Coastal Insurance?
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 American Coastal Insurance. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of American Coastal Insurance, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in American Coastal Insurance. The company's largest shareholder is R. Peed, with ownership of 36%. For context, the second largest shareholder holds about 4.7% of the shares outstanding, followed by an ownership of 3.5% by the third-largest shareholder.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of American Coastal Insurance
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.