Big week for institutional investors at Bassett Furniture Industries, Incorporated (NASDAQ:BSET) after losing 17% from a year ago

A look at the shareholders of Bassett Furniture Industries, Incorporated (NASDAQ: BSET) can tell us which group is more powerful. And the group that holds the biggest slice of the pie are institutions with 63% ownership. In other words, the group faces the maximum upside potential (or downside risk).

After a year of 17% losses, last week’s 11% gain would be welcomed by institutional investors as a likely sign that yields may start to rise.

Let’s dive deeper into each type of owner in Bassett Furniture Industries, starting with the chart below.

See our latest analysis for Bassett Furniture Industries

NasdaqGS: BSET Ownership Breakdown on March 3, 2022

What does institutional ownership tell us about Bassett Furniture Industries?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

As you can see, institutional investors own a sizable share of Bassett Furniture Industries. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the past earnings trajectory of Bassett Furniture Industries (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
NasdaqGS: BSET Earnings and Revenue Growth on March 3, 2022

Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. Hedge funds don’t have a lot of shares in Bassett Furniture Industries. GAMCO Investors, Inc. is currently the largest shareholder, with 8.9% of shares outstanding. For context, the second shareholder owns approximately 7.6% of the outstanding shares, followed by a 6.6% ownership by the third shareholder. Additionally, the company’s CEO, Robert Spilman, directly owns 2.9% of the total shares outstanding.

A closer look at our ownership figures suggests that the top 15 shareholders hold a combined ownership of 50%, implying that no single shareholder has a majority.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Bassett Furniture Industries Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We may report that insiders hold stock in Bassett Furniture Industries, Incorporated. In their own name, insiders hold $13 million worth of stock in the $178 million company. Some would say this shows the alignment of interests between shareholders and the board, although we generally prefer to see larger insider participations. But it might be worth checking to see if these insiders have sold.

General public property

With a 30% stake, the general public, consisting primarily of individual investors, has some influence over Bassett Furniture Industries. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Bassett Furniture Industries, we need to consider many other factors. To this end, you should be aware of the 2 warning signs we spotted with Bassett Furniture Industries.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and 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 financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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