Could The Aker Solutions (OB:AKSO) Ownership Structure Tell Us Something Useful?

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The big shareholder groups in Aker Solutions (OB:AKSO) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Aker Solutions has a market capitalization of øre12b, so we would expect some institutional investors to have noticed the stock. Taking a look at the our data on the ownership groups (below), it’s seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about AKSO.

View our latest analysis for Aker Solutions

OB:AKSO Ownership Summary February 10th 19
OB:AKSO Ownership Summary February 10th 19

What Does The Institutional Ownership Tell Us About Aker Solutions?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors own 33% of Aker Solutions. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Aker Solutions’s earnings history, below. Of course, the future is what really matters.

OB:AKSO Income Statement Export February 10th 19
OB:AKSO Income Statement Export February 10th 19

We note that hedge funds don’t have a meaningful investment in Aker Solutions. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Aker Solutions

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Aker Solutions. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own øre7.9m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.