American Coastal Insurance Company ( NASDAQ:ACIC ) insiders had a great week as the stock rose 16%, and they haven’t stopped buying

the main ideas

• Insiders appear to have a vested interest in American Coastal Insurance’s growth, as evidenced by their significant ownership
• The top 4 shareholders own 51% of the company
• Insiders have been buying recently

Every investor in American Coastal Insurance Corporation ( NASDAQ:ACIC ) should be aware of the most powerful shareholder groups. The group that owns the largest piece of the pie are individual insiders with ownership of 53%. This means that the group stands to gain more if the stock rises (or lose more if there is a decline).

Insiders who have been buying recently should be particularly happy after the stock is up 16% in the last week.

In the chart below, we zoom in on the different ownership groups of American Coastal Insurance.

View our latest analysis for US Coastal Insurance

What does institutional ownership tell us about US Coastal Insurance?

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

As you can see, institutional investors own a fair amount of stake in American Coastal Insurance. This means that the analysts working for those institutions have looked at the stock and expressed their admiration for it. But like everyone else, they can be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. So, it’s worth looking at American Coastal Insurance’s earnings history below. Of course, the future is what really matters.

Hedge funds don’t own many shares in American Coastal Insurance. The company’s largest shareholder is R. Peed, with an ownership of 39%. In comparison, the second and third largest shareholders own about 5.1% and 3.1% of the shares.

Looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the company’s decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There is a little analytical coverage of the stock, but not much. So there is room for more coverage.

Insider ownership of US Coastal Insurance

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the business, but the CEO will report to the board, even if he or she is a member of it.

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

It appears that insiders own more than half of American Coastal Insurance Corporation shares. This gives them a lot of power. So they have a $266 million stake in this $505 million business. Most people would argue that this is a positive thing, and shows strong alignment with shareholders. You can click here to see if these insiders have been buying or selling.

Public ownership

The general public, usually individual investors, own a 25% stake in American Coastal Insurance. This size of ownership, although significant, may not be enough to change company policy if the decision is not in sync with other major shareholders.

Next steps:

While it is useful to consider the different groups that own a company, there are other factors that are even more important. Pay attention to what US Coastal Insurance shows 2 warning signs in our investment analysis And one of them is related to…

If you’d rather discover what analysts are forecasting in terms of future growth, don’t miss it free Report on analyst forecasts.

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

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