Stock Analysis

Individual investors own 24% of The Navigator Company, S.A. (ELI:NVG) shares but public companies control 70% of the company

ENXTLS:NVG
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Key Insights

  • Navigator Company's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. owns 70% of the company
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in The Navigator Company, S.A. (ELI:NVG) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 70% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors, on the other hand, account for 24% of the company's stockholders.

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

View our latest analysis for Navigator Company

ownership-breakdown
ENXTLS:NVG Ownership Breakdown April 9th 2024

What Does The Institutional Ownership Tell Us About Navigator Company?

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.

Navigator Company already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Navigator Company, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ENXTLS:NVG Earnings and Revenue Growth April 9th 2024

Hedge funds don't have many shares in Navigator Company. Our data shows that Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. is the largest shareholder with 70% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 1.3% and 0.6% of the stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Navigator Company

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Navigator Company. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 70% of the Navigator Company shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Navigator Company you should know about.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Navigator Company is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.