Retail investors account for 55% of Nordic American Tankers Limited's (NYSE:NAT) ownership, while institutions account for 41%
In This Article:
Key Insights
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The considerable ownership by retail investors in Nordic American Tankers indicates that they collectively have a greater say in management and business strategy
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The top 25 shareholders own 38% of the company
If you want to know who really controls Nordic American Tankers Limited (NYSE:NAT), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And institutions on the other hand have a 41% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Nordic American Tankers, beginning with the chart below.
See our latest analysis for Nordic American Tankers
What Does The Institutional Ownership Tell Us About Nordic American Tankers?
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 Nordic American Tankers does have institutional investors; and they hold a good portion of the company's stock. 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 Nordic American Tankers' historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Nordic American Tankers. Dimensional Fund Advisors LP is currently the largest shareholder, with 5.8% of shares outstanding. For context, the second largest shareholder holds about 5.5% of the shares outstanding, followed by an ownership of 2.7% by the third-largest shareholder. Additionally, the company's CEO Herbjorn Hansson directly holds 2.0% of the total shares outstanding.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.