To get a sense of who is truly in control of Nordic Group Limited (SGX:MR7), it is important to understand the ownership structure of the business. With 80% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
It's interesting to note that insiders have been buying shares recently. This could signal that stock prices could go up and insiders are here for it.
In the chart below, we zoom in on the different ownership groups of Nordic Group.
See our latest analysis for Nordic Group
What Does The Lack Of Institutional Ownership Tell Us About Nordic Group?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Nordic Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Nordic Group is not owned by hedge funds. Our data suggests that Yeh Hong Chang, who is also the company's Top Key Executive, holds the most number of shares at 55%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 11% and 8.1% of the shares outstanding respectively, Choon Hin Lin and Ling Ling Teo are the second and third largest shareholders. Interestingly, the second and third-largest shareholders also happen to be the Senior Key Executive and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Nordic Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.