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Insiders Continue to Buy Crawford & Company (NYSE:CRD.B) and Now Own 57% Shares

Simply Wall St ·  Mar 10, 2023 23:11

Key Insights

  • Insiders appear to have a vested interest in Crawford's growth, as seen by their sizeable ownership
  • 54% of the business is held by the top 2 shareholders
  • Insiders have been buying lately

A look at the shareholders of Crawford & Company (NYSE:CRD.B) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Having purchased shares recently, insiders must be glad after market cap hit US$331m last week.

In the chart below, we zoom in on the different ownership groups of Crawford.

See our latest analysis for Crawford

ownership-breakdown
NYSE:CRD.B Ownership Breakdown March 10th 2023

What Does The Institutional Ownership Tell Us About Crawford?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Crawford already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Crawford's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:CRD.B Earnings and Revenue Growth March 10th 2023

We note that hedge funds don't have a meaningful investment in Crawford. The company's largest shareholder is Jesse Crawford, with ownership of 49%. In comparison, the second and third largest shareholders hold about 5.6% and 4.1% of the stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Crawford

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate 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 the majority of Crawford & Company. This means they can collectively make decisions for the company. Given it has a market cap of US$331m, that means they have US$188m worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Crawford. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Crawford is showing 2 warning signs in our investment analysis , you should know about...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 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.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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