First Savings Financial Group, Inc.'s (NASDAQ:FSFG) top owners are retail investors with 46% stake, while 29% is held by institutions
In This Article:
Key Insights
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The considerable ownership by retail investors in First Savings Financial Group indicates that they collectively have a greater say in management and business strategy
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The top 25 shareholders own 49% of the company
Every investor in First Savings Financial Group, Inc. (NASDAQ:FSFG) should be aware of the most powerful shareholder groups. With 46% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 29% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
In the chart below, we zoom in on the different ownership groups of First Savings Financial Group.
View our latest analysis for First Savings Financial Group
What Does The Institutional Ownership Tell Us About First Savings Financial Group?
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.
First Savings Financial Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 First Savings Financial Group's historic earnings and revenue below, but keep in mind there's always more to the story.
It looks like hedge funds own 5.8% of First Savings Financial Group shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Looking at our data, we can see that the largest shareholder is FJ Capital Management, LLC with 5.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.7% and 5.6%, of the shares outstanding, respectively. Larry Myers, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
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.