Key Insights
- Significantly high institutional ownership implies First Business Financial Services’ stock price is sensitive to their trading actions
- 50% of the business is held by the top 16 shareholders
- Insiders have been buying lately
Every investor in First Business Financial Services, Inc. (NASDAQ:FBIZ) should be aware of the most powerful shareholder groups. With 61% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutional investors would probably welcome last week’s 16% increase in share prices after a year of 5.2% losses as a sign that returns are likely to begin trending higher.
In the chart below, we zoom in on the different ownership groups of First Business Financial Services.
Check out our latest analysis for First Business Financial Services
What Does The Institutional Ownership Tell Us About First Business Financial Services?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that First Business Financial Services does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 First Business Financial Services, (below). Of course, keep in mind that