Private companies who have a significant stake must be disappointed along with institutions after Golden Ocean Group Limited's (NASDAQ:GOGL) market cap dropped by US$116m

In This Article:

Key Insights

  • Significant control over Golden Ocean Group by private companies implies that the general public has more power to influence management and governance-related decisions

  • 51% of the business is held by the top 4 shareholders

  • Institutions own 35% of Golden Ocean Group

Every investor in Golden Ocean Group Limited (NASDAQ:GOGL) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 35% shares weren’t spared from last week’s US$116m market cap drop, private companies as a group suffered the maximum losses

Let's take a closer look to see what the different types of shareholders can tell us about Golden Ocean Group.

View our latest analysis for Golden Ocean Group

ownership-breakdown
NasdaqGS:GOGL Ownership Breakdown October 9th 2024

What Does The Institutional Ownership Tell Us About Golden Ocean Group?

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 Golden Ocean Group. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Golden Ocean Group's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NasdaqGS:GOGL Earnings and Revenue Growth October 9th 2024

We note that hedge funds don't have a meaningful investment in Golden Ocean Group. Greenwich Holdings Ltd. is currently the largest shareholder, with 39% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 5.4% of common stock, and Folketrygdfondet holds about 3.7% of the company stock.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Golden Ocean Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.