QCR Holdings, Inc. (NASDAQ:QCRH) is largely controlled by institutional shareholders, who own 73% of the company

Key observations

• Given the large institutional holdings in the stock, QCR Holdings’ share price could be susceptible to their trading decisions

• The 16 largest shareholders hold 51% of the company’s shares

• Analyst forecasts combined with ownership data provide a solid understanding of the company’s prospects

If you want to know who really controls QCR Holdings, Inc. (NASDAQ:QCRH), you have to look at the composition of the share registry. With 73% of the shares, institutions own the maximum number of shares in the company. This means the group could gain the most if the stock rises (or lose the most if it falls).

Because institutional owners have a huge pool of resources and liquidity, their investment decisions tend to carry a lot of weight, especially in the case of individual investors. Hence, having a significant amount of institutional money invested in a company is often considered a desirable trait.

Let’s take a closer look at the different types of owners of QCR Holdings, starting with the chart below.

Check out our latest analysis for QCR Holdings

What does the institutional ownership structure tell us about QCR Holdings?

Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in QCR Holdings. This could indicate that the company has some credibility in the investment community. However, it is best to be cautious when relying on the supposed validation that comes with institutional investors. They too can make mistakes sometimes. If multiple institutions change their minds about a stock at the same time, you could see the share price drop quickly. So it is worth taking a look at QCR Holdings’ earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half of the outstanding shares, the board will likely have to pay attention to their preferences. QCR Holdings is not owned by any hedge funds. The company’s largest shareholder is FMR LLC, with a 9.0% stake. In comparison, the second largest shareholder owns about 8.2% of the shares outstanding, followed by the third largest shareholder with 6.2%. Additionally, the company’s CEO Larry Helling directly owns 0.6% of all shares outstanding.

A closer look at our ownership data shows that the top 16 shareholders collectively own 51% of the shares, meaning that no single shareholder has a majority of the shares.

While researching institutional ownership of a company can add value to your research, it’s also a good idea to research analyst recommendations to better understand the stock’s expected performance. Quite a few analysts cover the stock, so you can look into its projected growth quite easily.

The story continues

QCR Holdings Internal Ownership

The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, including at least board members. The board ultimately reports to the board. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.

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

We can report that company insiders own shares in QCR Holdings, Inc. It’s a fairly large company, so it’s generally positive to see potentially significant alignment. In this case, they own about $45 million worth of shares (at current prices). Most would say that shows alignment of interests between shareholders and management. Still, it’s worth checking if insiders have been selling.

Public property

With a 24% stake, the general public, consisting mostly of individual investors, has some degree of influence over QCR Holdings. This size of ownership, while significant, may not be enough to change the company’s policy if the decision is not in line with the decisions of other large shareholders.

Next steps:

While it is worth considering the different groups that own the company, there are other factors that are even more important. To do this, you need to be aware 1 warning sign we noticed at QCR Holdings.

Ultimately the future is the most important. You can access this free report on analyst forecasts for the company.

NB: The figures in this article are calculated using the last twelve months of data, which refer to the 12-month period ending on the last day of the month in which the financial statements are prepared. This may not be consistent with the figures in the annual report for the full year.

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This Simply Wall St article is for general information purposes only. Our commentary is based solely on historical data and analyst forecasts, and is based on an objective methodology. 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 your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.