In This Article:
Key Insights
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Nordic Group's significant insider ownership suggests inherent interests in company's expansion
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Yeh Hong Chang owns 55% of the company
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Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
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 81% 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.
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
Let's take a closer look to see what the different types of shareholders can tell us about Nordic Group.
View our latest analysis for Nordic Group
What Does The Lack Of Institutional Ownership Tell Us About Nordic Group?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Nordic Group's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Nordic Group is not owned by hedge funds. From our data, we infer that the largest shareholder is Yeh Hong Chang (who also holds the title of Top Key Executive) with 55% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. 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 third-largest shareholder, Ling Ling Teo is also a Member of the Board of Directors, again, indicating strong 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.