key insights
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Significantly high institutional ownership means Heritage Financial’s stock price is sensitive to its trading actions.
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A total of 12 investors hold a majority stake in the company, holding 51% of the ownership.
All investors in Heritage Financial Corporation (NASDAQ:HFWA) You need to be aware of the most powerful shareholder groups. We can see that institutional investors control the majority of the company, with an ownership of 79%. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
Because institutional investors have vast resources and liquidity, their investment decisions tend to have significant influence, especially for individual investors. Therefore, a significant portion of institutional funds invested in a company is usually a huge vote of confidence in the company’s future.
The chart below zooms in on the different ownership groups for Heritage Financial.
Check out our latest analysis for Heritage Financial.
What does institutional ownership tell us about Heritage Financial?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
Heritage Financial already has a share registry on the register. In fact, they own a significant stake in the company. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. 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 Heritage Financial, (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own more than half of the outstanding shares, so the board will need to pay attention to their preferences. Heritage Financial is not owned by hedge funds. According to our data, BlackRock, Inc. is his largest shareholder with 15% of shares outstanding. Meanwhile, the second and third largest shareholders hold 7.3% and 6.3% of the shares outstanding, respectively.
If we take a closer look at our ownership figures, we can see that the top 12 shareholders have a combined ownership of 51%, meaning that no single shareholder has a majority.
While researching 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 predicting.
Insider ownership in Heritage Financial
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to know that insiders own shares in Heritage Financial Corporation. The insiders own US$14m worth of shares in the US$718m company in their own names. This shows at least some consistency.you can Click here to see if insiders have been buying or selling.
Public ownership
With a 19% ownership interest, the general public (mainly retail investors) has some influence over Heritage Financial. While this size of ownership may not be enough to sway policy decisions in their favor, they can still collectively influence company policy.
Next steps:
I think it would be very interesting to see who exactly owns the company. But to really gain insight, you need to consider other information as well.Case in point: we discovered 1 warning sign for Heritage Financial you should know.
But in the end it’s the futureIt, not the past, determines how well the owner of this business will do. Therefore, we recommend that you consider the following: This free report shows whether analysts are predicting a bright future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
