Every investor in the Big 5 Sporting Goods Corporation (NASDAQ: BGFV) should be aware of the most powerful groups of shareholders. Insiders often own a large portion of younger, smaller companies, while large companies tend to have institutions as shareholders. I really like to see at least a little bit of inside property. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
With a market cap of $ 493 million, Big 5 Sporting Goods is a small-cap stock that many institutional investors may not be familiar with. In the following graphic we can see that institutions stand out in the share register. Let’s dive deeper into each type of owner to find out more about Big 5 Sporting Goods.
Check out our latest analysis for Big 5 Sporting Goods
NasdaqGS: BGFV Property Breakdown Aug 25, 2021
What does institutional ownership tell us about Big 5 sporting goods?
As a rule, institutions measure themselves against a benchmark when reporting to their own investors, so that they are often more enthusiastic about a stock when it is included in a major index. We would expect most companies to have some institutes on their register, especially as they grow.
We can see that Big 5 Sporting Goods has institutional investors; and they hold a good chunk of the company’s stock. This may suggest that the company has some credibility in the investment community. However, it is best to be careful not to rely on the supposed validation of institutional investors. Sometimes they get it wrong too. If several institutes own a share, there is always the risk that they are in a “crowd trade”. When such a trade goes wrong, multiple parties can compete to sell stocks quickly. This risk is higher in a company with no history of growth. You can check out Big 5 Sporting Goods historical revenue and earnings below, but keep in mind that history always involves more.
NasdaqGS: BGFV earnings and sales growth August 25, 2021
With institutional investors owning more than half of the stocks in issue, the board of directors will likely need to be mindful of their preferences. Big 5 Sporting Goods is not owned by hedge funds. BlackRock, Inc. is currently the company’s largest shareholder with 6.4% of the shares outstanding. Dimensional Fund Advisors LP is the second largest shareholder with 5.1% of the common stock, and The Vanguard Group, Inc. owns approximately 4.7% of the company’s stock. In addition, CEO Steven Miller owns 3.7% of the company’s shares.
A look at the shareholder register shows that 50% of the property is controlled by the 23 largest shareholders, meaning that no single shareholder has a controlling stake in the property.
While it makes sense to examine institutional ownership data for a company, it also makes sense to examine analyst sentiment to know which way the wind is blowing. There’s a little analyst coverage on the stock, but not a lot. So there is room for more reach.
Inside ownership of the Big 5 sporting goods
The definition of an insider can vary slightly from country to country, but board members always count. Management ultimately replies to the board. However, it is not uncommon for managers to be board members, especially when they are founders or CEOs.
Most consider insider ownership to be a positive as it may indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated within this group.
Shareholders would likely be interested to know that Insiders own shares in the Big 5 Sporting Goods Corporation. As individuals, the Insiders have a combined value of $ 29 million in the $ 493 million company. This shows at least some direction. You can click here to see if these Insiders bought or sold.
General public property
The public owns a 35% stake in Big 5 Sporting Goods. While this size of ownership is substantial, it may not be enough to change company policy if the decision does not coincide with other major shareholders.
While it is worth considering a company’s different groups of owners, there are other factors that are even more important. For example we discovered 4 warning signs for Big 5 Sporting Goods that you should know before investing here.
If you’re like me, you might want to think about whether this company is going to grow or shrink. Fortunately, you can check out this free analyst forecast report for the future.
Note: The numbers in this article are calculated using data for the past twelve months, which refers to the twelve month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual financial statements.
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