Key Insights

• Significant control over Texas Community Bancshares by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 25 shareholders own 38% of the company
• Insiders have been selling lately

A look at the shareholders of Texas Community Bancshares, Inc. (NASDAQ:TCBS) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 21% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual insiders make up 7.0% of the company’s shareholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

Let's delve deeper into each type of owner of Texas Community Bancshares, beginning with the chart below.

Check out our latest analysis for Texas Community Bancshares

What Does The Institutional Ownership Tell Us About Texas Community Bancshares?

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.

Less than 5% of Texas Community Bancshares is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Texas Community Bancshares. Our data shows that Mineola Community Bank, S.S.B.Employee Stock Ownership Plan Trust is the largest shareholder with 8.5% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.0% and 2.8%, of the shares outstanding, respectively. Anthony Scavuzzo, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Jason Sobel, the CEO has 0.9% of the shares allocated to their name.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Texas Community Bancshares

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can see that insiders own shares in Texas Community Bancshares, Inc.. In their own names, insiders own US$9.2m worth of stock in the US$131m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 21% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Texas Community Bancshares better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Texas Community Bancshares you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.