While private companies own 16% of Novem Group S.A. (ETR:NVM), private equity firms are its largest shareholders with 62% ownership
In This Article:
Key Insights
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Novem Group's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
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Bregal Investments Inc. owns 62% of the company
Every investor in Novem Group S.A. (ETR:NVM) should be aware of the most powerful shareholder groups. We can see that private equity firms own the lion's share in the company with 62% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, private companies make up 16% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Novem Group.
View our latest analysis for Novem Group
What Does The Institutional Ownership Tell Us About Novem 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.
We can see that Novem Group does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Novem Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Novem Group is not owned by hedge funds. Bregal Investments Inc. is currently the largest shareholder, with 62% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 16% and 4.9% of the stock.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Novem Group
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.