Key Insights

• The considerable ownership by individual investors in PCB Bancorp indicates that they collectively have a greater say in management and business strategy

• 50% of the business is held by the top 18 shareholders

• Insiders have sold recently

A look at the shareholders of PCB Bancorp (NASDAQ:PCB) can tell us which group is most powerful. The group holding the most number of shares in the company, around 42% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutions, on the other hand, account for 34% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

Let's delve deeper into each type of owner of PCB Bancorp, beginning with the chart below.

See our latest analysis for PCB Bancorp

What Does The Institutional Ownership Tell Us About PCB 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.

PCB Bancorp 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 PCB Bancorp's historic earnings and revenue below, but keep in mind there's always more to the story.

PCB Bancorp is not owned by hedge funds. Sang Lee is currently the largest shareholder, with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.8% and 5.1% of the stock. Don Rhee, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Henry Kim, the CEO has 1.7% of the shares allocated to their name.

After doing some more digging, we found that the top 18 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.