After losing 33% in the past year, Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) institutional owners must be relieved by the recent gain

In This Article:

Key Insights

  • Significantly high institutional ownership implies Cracker Barrel Old Country Store's stock price is sensitive to their trading actions

  • The top 7 shareholders own 52% of the company

  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

Every investor in Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 79% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutional investors would probably welcome last week's 6.5% increase in the share price after a year of 33% losses as a sign that returns may to begin trending higher.

Let's take a closer look to see what the different types of shareholders can tell us about Cracker Barrel Old Country Store.

Check out our latest analysis for Cracker Barrel Old Country Store

ownership-breakdown
NasdaqGS:CBRL Ownership Breakdown November 18th 2024

What Does The Institutional Ownership Tell Us About Cracker Barrel Old Country Store?

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

We can see that Cracker Barrel Old Country Store does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Cracker Barrel Old Country Store's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NasdaqGS:CBRL Earnings and Revenue Growth November 18th 2024

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It would appear that 9.3% of Cracker Barrel Old Country Store shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. BlackRock, Inc. is currently the company's largest shareholder with 16% of shares outstanding. With 12% and 9.3% of the shares outstanding respectively, The Vanguard Group, Inc. and Biglari Capital LLC are the second and third largest shareholders.

Waiting for permission
Allow microphone access to enable voice search

Try again.