Institutional investors hold a significant 41% stake in Macatawa Bank Corporation (NASDAQ: MCBC)
To get an idea of who really controls Macatawa Bank Corporation (NASDAQ: MCBC), it is important to understand the ownership structure of the company. The group with the largest number of shares in the company, around 41% to be precise, are institutions. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
Since institutions have access to huge amounts of capital, their movements in the market tend to come under scrutiny from retail or individual investors. Therefore, a large amount of institutional money invested in a company is generally considered a positive attribute.
In the table below, we zoom in on the different ownership groups of Macatawa Bank.
See our latest analysis for Macatawa Bank
What does institutional ownership tell us about Macatawa Bank?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Macatawa Bank already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Macatawa Bank’s earnings history below. Of course, the future is what really matters.
We note that hedge funds have no significant investment in Macatawa Bank. Stephen Van Andel is currently the company’s largest shareholder with 16% of the outstanding shares. For context, the second shareholder owns approximately 4.9% of the outstanding shares, followed by a 4.6% ownership by the third shareholder. Richard Postma, who is the third shareholder, also holds the title of Chairman of the Board of Directors. Additionally, we found that Ronald Haan, the CEO, owns 0.9% of the shares allocated in his name.
After digging a little deeper, we found that the top 14 held combined ownership of 50% of the company, suggesting that no single shareholder has significant control over the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.
Macatawa Bank Insider Ownership
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
It appears that insiders own a large share of the Macatawa Bank Corporation. It has a market capitalization of just US$319 million and insiders hold US$73 million worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
The general public, including retail investors, owns 37% of the company’s shares and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Next steps:
While it is worth considering the different groups that own a business, there are other, even more important factors. Example: we have identified 1 warning sign for Macatawa Bank you should be aware.
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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