In This Article:
Key Insights
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Institutions' substantial holdings in NVE implies that they have significant influence over the company's share price
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A total of 25 investors have a majority stake in the company with 49% ownership
A look at the shareholders of NVE Corporation (NASDAQ:NVEC) can tell us which group is most powerful. The group holding the most number of shares in the company, around 59% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of NVE.
Check out our latest analysis for NVE
What Does The Institutional Ownership Tell Us About NVE?
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 have a fair amount of stake in NVE. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of NVE, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in NVE. Royce & Associates, LP is currently the largest shareholder, with 11% of shares outstanding. Kayne Anderson Rudnick Investment Management, LLC is the second largest shareholder owning 9.7% of common stock, and The Vanguard Group, Inc. holds about 4.5% of the company stock. In addition, we found that Daniel Baker, the CEO has 1.4% of the shares allocated to their name.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.