Market cap

Associated Banc-Corp’s (NYSE:ASB) market cap drop of $109 million may not have as much impact on institutional owners after a year of 0.5% returns

A look at the shareholders of Associated Banc-Corp (NYSE:ASB) can tell us which group is more powerful. With 84% of the capital, the institutions hold the maximum number of shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 3.4% in value last week. Nonetheless, the 0.5% year-over-year gains may have helped to mitigate their overall losses. But they would probably be wary of future losses.

Let’s dig deeper into each Associated Banc-Corp owner type, starting with the table below.

See our latest analysis for Associated Banc-Corp

NYSE: Breakdown of ASB’s shareholding on October 13, 2022

What does institutional ownership tell us about Associated Banc-Corp?

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.

We can see that Associated Banc-Corp has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Associated Banc-Corp’s historic earnings and revenue below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth
NYSE: ASB Earnings and Revenue Growth October 13, 2022

Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Hedge funds don’t have a lot of shares in Associated Banc-Corp. BlackRock, Inc. is currently the company’s largest shareholder with 12% of the shares outstanding. In comparison, the second and third shareholders hold approximately 10% and 7.0% of the shares.

Upon closer inspection, we found that more than half of the company’s shares are held by the top 10 shareholders, suggesting that the interests of larger shareholders are to some extent balanced by those of smaller ones.

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. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Associated Banc-Corp Insider Ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

We may report that insiders hold shares in Associated Banc-Corp. Insiders have a significant stake worth US$68 million. Most would see this as a real positive. If you want to explore the issue of insider alignment, you can click here to see if insiders have been buying or selling.

General public property

The general public, including retail investors, owns 14% of the company’s capital 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:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. For example, we have identified 1 warning sign for Associated Banc-Corp of which you should be aware.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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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