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Key Insights

• Significant insider control over Nordic Group implies vested interests in company growth

• 55% of the company is held by a single shareholder (Yeh Hong Chang)

• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Nordic Group Limited (SGX:MR7) should be aware of the most powerful shareholder groups. With 82% 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.

So it follows, every decision made by insiders of Nordic Group regarding the company's future would be crucial to them.

In the chart below, we zoom in on the different ownership groups of Nordic Group.

Check out 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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. 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. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Nordic Group's case, its Top Key Executive, Yeh Hong Chang, is the largest shareholder, holding 55% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 8.1%, of the shares outstanding, respectively. 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.