What you need to know about the composition of investors at poLight ASA (OB: PLT)
If you want to know who really controls poLight ASA (OB: PLT), then you will have to look at the composition of its share register. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. We also tend to see a decrease in insider ownership in companies that were previously state-owned.
poLight is not a big company by global standards. It has a market cap of 1.3 billion crowns, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s dig deeper into each type of owner, to learn more about poLight.
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What does institutional ownership tell us about poLight?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
poLight already has institutions on the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out poLight’s earning history below. Of course, the future is what really matters.
We note that hedge funds do not have a significant investment in poLight. Investinor AS is currently the largest shareholder, with 28% of the shares outstanding. With 4.4% and 4.3% of the outstanding shares respectively, Nordnet Pensionsförsäkring Ab, Asset Management Arm and Viking Venture AS are the second and third shareholders.
Looking at our ownership data, we found that 15 of the major shareholders collectively own less than 50% of the share register, implying that no individual has a controlling stake.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. As far as I know, there is no analyst coverage of the company, so it probably goes under the radar.
PoLight Insider Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% poLight ASA. However, it is possible that insiders will have an indirect interest through a more complex structure. It appears that the board members have no more than 4.0 million crowns of shares in the 1.3 billion crown company. I generally like to see a more invested board. However, it might be worth checking to see if those insiders have bought.
General public property
The general public, including retail investors, own 54% of poLight. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
With a 28% stake, private equity firms could influence poLight’s board of directors. Some might like this, as sometimes private capital is activists holding management accountable. But other times, the private equity sells, after you take the company public.
It’s always worth thinking about the different groups that own shares in a company. But to understand poLight better, there are many other factors that we need to take into account. Be aware that poLight shows 4 warning signs in our investment analysis , and 2 of them don’t sit too well with us …
Sure this might not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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