What you need to know about National Energy Services Reunited Corp.’s investor makeup. (NASDAQ:NESR)
Every investor in National Energy Services Reunited Corp. (NASDAQ:NESR) needs to know the most powerful shareholder groups. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see a decline in insider participation in companies that were previously public.
National Energy Services Reunited is a small company with a market capitalization of US$639 million, so it may still fly under the radar of many institutional investors. Our analysis of societal ownership below shows that institutions own shares in society. Let’s dig deeper into each owner type, to learn more about National Energy Services Reunited.
What does institutional ownership tell us about the combined national energy services?
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.
We see that National Energy Services Reunited has many institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth taking a look at National Energy Services Reunited’s earnings history below. Of course, the future is what really matters.
National Energy Services Reunited is not owned by hedge funds. Olayan Investments Company Establishment is currently the company’s largest shareholder with 19% of the outstanding shares. In comparison, the second and third shareholders hold around 10% and 8.7% of the shares.
We also observed that the top 6 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
National Energy Services Insider Ownership Reunited
The definition of an insider may differ slightly from country to country, but board members still matter. 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.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Shareholders would likely be interested to learn that insiders hold shares of National Energy Services Reunited Corp. As individuals, insiders collectively own $17 million of the $639 million company. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking to see if these insiders have sold.
General public property
With an 11% stake, the general public, consisting mostly of individual investors, has some influence over National Energy Services Reunited. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private equity ownership
With an 8.7% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.
Private Company Ownership
We can see that private companies hold 37% of the shares issued. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Take for example the ubiquitous specter of investment risk. We have identified 1 warning sign with National Energy Services Reunited, and understanding them should be part of your investment process.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its 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.
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