Stock Analysis

What You Need To Know About Nanoform Finland Oyj's (HEL:NANOFH) Investor Composition

HLSE:NANOFH
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If you want to know who really controls Nanoform Finland Oyj (HEL:NANOFH), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.

Nanoform Finland Oyj is not a large company by global standards. It has a market capitalization of €386m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Nanoform Finland Oyj.

View our latest analysis for Nanoform Finland Oyj

ownership-breakdown
HLSE:NANOFH Ownership Breakdown December 21st 2020

What Does The Institutional Ownership Tell Us About Nanoform Finland Oyj?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Nanoform Finland Oyj 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 Nanoform Finland Oyj's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
HLSE:NANOFH Earnings and Revenue Growth December 21st 2020

Hedge funds don't have many shares in Nanoform Finland Oyj. The company's CEO Edward Hæggström is the largest shareholder with 9.0% of shares outstanding. Sampo Oyj, Asset Management Arm is the second largest shareholder owning 8.8% of common stock, and Helsingin yliopiston rahastot, Endowment Arm holds about 8.2% of the company stock.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Nanoform Finland Oyj

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Nanoform Finland Oyj. Insiders have a €133m stake in this €386m business. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 18% ownership, the general public have some degree of sway over Nanoform Finland Oyj. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Nanoform Finland Oyj you should be aware of, and 1 of them is concerning.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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