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If you want to know who really controls New Nordic Healthbrands AB (publ) (STO:NNH), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
New Nordic Healthbrands is not a large company by global standards. It has a market capitalization of kr492m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about NNH.
Check out our latest analysis for New Nordic Healthbrands
What Does The Institutional Ownership Tell Us About New Nordic Healthbrands?
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.
Institutions own less than 5% of New Nordic Healthbrands. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
We note that hedge funds don't have a meaningful investment in New Nordic Healthbrands. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of New Nordic Healthbrands
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in New Nordic Healthbrands AB (publ). Insiders have a kr212m stake in this kr492m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.