What does the ownership structure of Nanoco Group plc (LON:NANO) look like?

A look at the shareholders of Nanoco Group plc (LON:NANO) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet”.

Nanoco Group is not a big company by global standards. It has a market capitalization of £145m, meaning it wouldn’t get the attention of many institutional investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about Nanoco Group.

Check out our latest analysis for Nanoco Group

LSE: NANO Ownership Breakdown June 8, 2022

What does institutional ownership tell us about the Nanoco group?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Nanoco Group already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the earnings history of Nanoco Group below. Of course, the future is what really matters.

earnings-and-revenue-growth
LSE: NANO Earnings and Revenue Growth June 9, 2022

Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Nanoco Group is not owned by hedge funds. Our data shows that Lombard Odier Asset Management (Europe) Limited is the largest shareholder with 27% of shares outstanding. With respectively 5.9% and 3.7% of the outstanding shares, Richard Griffiths and Nigel Pickett are the second and third shareholders. Nigel Pickett, who is the third shareholder, also holds the title of member of the board of directors.

We also observed that the top 10 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There is a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.

Nanoco Group Insider Ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders hold a significant stake in Nanoco Group plc. It has a market capitalization of just £145m and insiders have shares worth £15m in their own name. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, including retail investors, owns 29% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Take risks for example – Nanoco Group has 5 warning signs (and 1 which is significant) that we think you should know about.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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