To get an idea of ​​who really controls Nordic Semiconductor ASA (OB:NOD), it is important to understand the ownership structure of the company. And the group that holds the biggest slice of the pie is made up of institutions that are 70% owned. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

Since institutions have access to huge amounts of capital, their movements in the market tend to come under scrutiny from retail or individual investors. Therefore, a good deal of institutional money invested in the company is usually a huge vote of confidence in its future.

In the table below, we zoom in on the different ownership groups of Nordic Semiconductor.

See our latest analysis for Nordic Semiconductor

What does institutional ownership tell us about Nordic Semiconductor?

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.

As you can see, institutional investors own a sizeable share of Nordic Semiconductor. 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 checking out Nordic Semiconductor’s earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half of the issued shares, the board will likely have to pay attention to their preferences. We note that hedge funds have no significant investment in Nordic Semiconductor. Our data shows that DNB Asset Management AS is the largest shareholder with 12% of shares outstanding. Meanwhile, the second and third largest shareholders hold 11% and 5.3% of the outstanding shares respectively. Additionally, we found that Svenn-Tore Larsen, the CEO, owns 1.0% of the shares allocated to his name.

A closer look at our ownership figures suggests that the top 12 shareholders hold a combined ownership of 51%, meaning that no single shareholder has a majority.

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. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider ownership of Nordic Semiconductor

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

We can report that insiders hold shares in Nordic Semiconductor ASA. Insiders have a significant stake worth 509 million kr. Most would see this as a real positive. If you want to explore the issue of insider alignment, you can click here to see if insiders have been buying or selling.

General public property

The general public, including retail investors, owns 26% of the company’s capital and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. To this end, you should be aware of the 1 warning sign we spotted with Nordic Semiconductor.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

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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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.