With 55% ownership, Nabaltec AG (ETR:NTG) insiders have a lot riding on the company's future

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editorial-team@simplywallst.com (Simply Wall St)

Wed, Oct 25, 2023, 12:00 AM 4 min read

If you want to know who really controls Nabaltec AG (ETR:NTG), then you'll have to look at the makeup of its share registry. With 55% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

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

Let's delve deeper into each type of owner of Nabaltec, beginning with the chart below.

See our latest analysis for Nabaltec

ownership-breakdown — XTRA:NTG Ownership Breakdown October 25th 2023

What Does The Institutional Ownership Tell Us About Nabaltec?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Nabaltec does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Nabaltec, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — XTRA:NTG Earnings and Revenue Growth October 25th 2023

Nabaltec is not owned by hedge funds. With a 28% stake, CEO Johannes Heckmann is the largest shareholder. For context, the second largest shareholder holds about 27% of the shares outstanding, followed by an ownership of 4.2% by the third-largest shareholder.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Nabaltec

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems that insiders own more than half the Nabaltec AG stock. This gives them a lot of power. So they have a €63m stake in this €114m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nabaltec. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Nabaltec better, we need to consider many other factors. For example, we've discovered 2 warning signs for Nabaltec (1 is significant!) that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.