To get a sense of who is truly in control of Independent Bank Group, Inc. (NASDAQ:IBTX), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 76% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And so it follows that institutional investors was the group most impacted after the company’s market cap fell to US$1.8b last week after a 3.5% drop in the share price. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 38% for shareholders. Also referred to as “smart money”, institutions have a lot of sway over how a stock’s price moves. As a result, if the downtrend continues, institutions may face pressures to sell Independent Bank Group, which might have negative implications on individual investors.