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If you want to know who really controls Westamerica Bancorporation (NASDAQ:WABC), then you need to look at the composition of its stock register. It can be seen that institutions own the lion’s share of the company, 78%. In other words, the group faces maximum upside potential (or downside risk).

Institutional investors were the most affected after the company’s market capitalization fell to US$1.5 billion last week. However, a 1.3% one-year yield could help cushion their overall losses. However, we’ll assume they’ll be looking for a weakness in the future.

In the chart below, we zoom in on Westamerica Bancorporation’s various ownership groups.

Check out our latest analysis for Westamerica Bancorporation

NasdaqGS:WABC ownership distribution on December 18, 2022

What does institutional ownership tell us about Westamerica Bancorporation?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. Thus, they generally consider buying larger companies that are included in the relevant benchmark index.

We can see that Westamerica Bancorporation has institutional investors. and they hold a good chunk of the company’s stock. This indicates some confidence among professional investors. But we can’t rely on that fact alone, because institutions sometimes make bad investments, as everyone does. It’s not uncommon to see a large drop in a stock’s price if two large institutional investors try to sell out of the stock at the same time. So it’s worth checking out Westamerica Bancorporation’s past earnings trajectory (below). Of course, remember that there are other factors to consider.

revenue and earnings growth
NasdaqGS:WABC Earnings and Earnings Growth for Dec 18, 2022

Institutional investors own more than 50% of the company, so together they are likely to have a large influence on board decisions. Westamerica Bancorporation does not own hedge funds. BlackRock, Inc. is currently the largest shareholder with 15% of the stock outstanding. In comparison, the second and third largest shareholders own about 12% and 7.8% of the shares. Furthermore, CEO David Payne owns 3.3% of the company’s shares.

Upon further inspection, we found that more than half of the company’s shares are owned by the top 8 shareholders, which suggests that the interests of the larger shareholders are somewhat balanced by the smaller ones.

While researching institutional ownership for a company can add value to your research, it’s also good practice to research analyst recommendations to gain a deeper understanding of the stock’s expected performance. There are a reasonable number of analysts covering the stock, so it can be helpful to find out their general view on the future.

Insider Ownership of Westamerica Bancorporation

The definition of company insiders can be subjective and varies between jurisdictions. Our data reflect individual insiders, capturing at least board members. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.

Many view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, in some cases too much power is concentrated within this group.

We can see that insiders own shares in Westamerica Bancorporation. It’s a big company, so it’s good to see this level of alignment. Insiders own $58 million worth of stock (at current prices). Good to see this level of investment from insiders. You can check here to see if these insiders have shopped recently.

Common public property

The general public, typically individual investors, owns 19% of Westamerica Bancorporation. Although this amount of ownership may not be sufficient to make a policy decision in their favor, they can still have a collective influence on company policy.

Next steps.

It’s always worth thinking about the different groups who own shares in the company. But to better understand Westamerica Bancorporation, we need to consider many other factors.

I like to dive deeper about how the company has performed in the past. Here you can find historical income and earnings detailed graph.

If you’re like me, you may be wondering if this company will grow or shrink. Fortunately, you can check out this free report that shows analyst predictions for its future.

Note: The figures in this article are calculated using data for the last twelve months covering the 12-month period ending on the last day of the month in which the financial statement is dated. This may not correspond to the figures in the annual report for the full year.

Valuation is complicated, but we help make it simple.

Find out if Westamerica Bancorporation can be over or under rated by checking out our comprehensive analysis which includes fair value estimates, risks and caveats, dividends, insider trading and financial health.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not take into account recent price-sensitive company announcements or quality materials. Simply Wall St has no position in the listed stocks.


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