If you want to know who really controls Provident Financial Services, Inc. (NYSE: PFS), you need to look at the makeup of the share register. Institutions often own stocks in larger companies, and we expect insiders to own a significant percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Provident Financial Services isn’t huge, but neither is it particularly small. She has a market cap of $ 1.8 billion, which means she would generally expect to see some institutions in the share register. Our analysis of ownership of the company below shows that institutions own shares in the company. Let’s take a closer look at what the different types of shareholders can tell us about Provident Financial Services.
Check out our latest analysis for Provident Financial Services
What does institutional ownership tell us about Provident Financial Services?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they are often more enthusiastic about a stock once it has been included in a large index. We would expect most companies to have some institutes on their register, especially as they grow.
Provident Financial Services already has institutes in the share register. In fact, they own a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on that alone, because institutions sometimes make bad investments, as everyone does. It is not uncommon for the stock price to drop sharply when two large institutional investors are trying to sell a stock at the same time. So it’s worth checking out Provident Financial Services’ earnings history so far (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own over 50% of the company, so together they are likely to have a major impact on board decisions. Hedge funds don’t have many stakes in Provident Financial Services. BlackRock, Inc. is currently the company’s largest shareholder with 15% of the shares outstanding. The Vanguard Group, Inc. and Dimensional Fund Advisors LP are the second and third largest shareholders, with 10% and 7.1% of the shares outstanding, respectively. In addition, CEO Christopher Martin owns 0.9% of the company’s shares.
After further research, we found that the top 11 collectively own 51% of the company, suggesting that no single shareholder has significant control over the company.
Studying institutional ownership is a great way to measure and filter the expected performance of a stock. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock so it might be worthwhile to see what they are forecasting as well.
Provident Financial Services insider ownership
The definition of corporate insider can be subjective and varies depending on the legal system. Our data reflects individual insiders and at least includes board members. The top management runs the business, but the CEO will be accountable to the board even if he or she is a member of the board.
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.
I can report that insiders own shares in Provident Financial Services, Inc. The insiders have a significant stake of $ 70 million. Most would see this as really positive. Most would say that this shows a match of interests between shareholders and the board of directors. Still, it might be worth checking to see if these insiders have sold.
General public property
The public holds 27% of the shares in Provident Financial Services. 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.
It is always worth thinking about the different groups that own shares in a company. However, in order to better understand Provident Financial Services, we need to consider many other factors. For example we discovered 3 warning signs for Provident Financial Services (1 is a little bit uncomfortable!) That you should be aware of before investing here.
Eventually the future is the most important. You can access it for free Report on analyst forecast for the company.
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.
This article from Simply Wall St is of a general nature. We only provide comments based on historical data and analyst projections using an unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
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