If you want to know who really controls Select Bancorp,bohren in stahlbeton Inc. (

NASDAQ:SLCT

), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of US$139m, Select Bancorp is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Select Bancorp.

See our latest analysis for Select Bancorp

ownership-breakdown

What Does The Institutional Ownership Tell Us About Select Bancorp?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Select Bancorp already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Select Bancorp, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth

Hedge funds don't have many shares in Select Bancorp. Looking at our data, we can see that the largest shareholder is Kevin Stallings with 6.0% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.8% and 4.6% of the stock.

A closer look at our ownership figures suggests that the top 25 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Select Bancorp

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Story continues

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Select Bancorp, Inc.. Insiders own US$16m worth of shares in the US$139m company. This may suggest that the founders still own a lot of shares. You can

click here to see if they have been buying or selling.

General Public Ownership

With a 43% ownership, the general public have some degree of sway over Select Bancorp. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the

1 warning sign

we've spotted with Select Bancorp

.

But ultimately

it is the future

, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at

this free report showing whether analysts are predicting a brighter future

.

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

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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