Are institutions heavily invested in shares of Biglari Holdings Inc. (NYSE: BH.A)?

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If you want to know who actually controls Biglari Holdings Inc. (NYSE: BH.A), then you will need to examine the makeup of its share register. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Biglari Holdings is a small company with a market cap of US $ 439 million, so it may still go under the radar of many institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. We can zoom in on the different ownership groups, to find out more about Biglari Holdings.

NYSE ownership breakdown: BH.A January 1, 2022

What does institutional ownership tell us about Biglari Holdings?

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 businesses to have some institutions listed, especially if they are growing.

Biglari Holdings already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see Biglari Holdings’ historic earnings and income below, but keep in mind that there is always more to tell.

profit and revenue growthNYSE: BH.A Profits and Revenue Growth January 1, 2022

Our data shows that hedge funds own 66% of Biglari Holdings. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Looking at our data, we can see that the largest shareholder is Biglari Capital Corp. with 66% of the shares outstanding. With such a stake in the property, we infer that they have significant control over the future of the business. Meanwhile, the second and third largest shareholders hold 3.3% and 2.8% of the outstanding shares, respectively.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. As far as we can tell, the company is not covered by analysts, so it probably goes unnoticed.

Insider ownership of Biglari Holdings

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

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

Our most recent data indicates that insiders own less than 1% of Biglari Holdings Inc. Its market capitalization is only US $ 439 million and the board of directors holds only US $ 2.0 million. actions in their own name. We generally like to see a more invested board. However, it might be worth checking out if these insiders bought.

General public property

The general public, who are generally individual investors, own 14% of the capital of Biglari Holdings. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Biglari Holdings, there are many other factors that we need to consider. For example, we have identified 1 warning sign for Biglari Holdings that you need to be aware of.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

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

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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. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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