Stock Analysis

Both retail investors who control a good portion of SpareBank 1 SMN (OB:MING) along with institutions must be dismayed after last week's 7.9% decrease

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Key Insights

  • SpareBank 1 SMN's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 39% of the business is held by the top 25 shareholders
  • Insiders have bought recently

A look at the shareholders of SpareBank 1 SMN (OB:MING) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While the holdings of retail investors took a hit after last week’s 7.9% price drop, institutions with their 42% holdings also suffered.

Let's take a closer look to see what the different types of shareholders can tell us about SpareBank 1 SMN.

See our latest analysis for SpareBank 1 SMN

OB:MING Ownership Breakdown March 19th 2023

What Does The Institutional Ownership Tell Us About SpareBank 1 SMN?

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.

SpareBank 1 SMN already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 SpareBank 1 SMN, (below). Of course, keep in mind that there are other factors to consider, too.

OB:MING Earnings and Revenue Growth March 19th 2023

We note that hedge funds don't have a meaningful investment in SpareBank 1 SMN. Pareto Forvaltning AS is currently the company's largest shareholder with 4.4% of shares outstanding. With 3.5% and 3.1% of the shares outstanding respectively, The Vanguard Group, Inc. and Sparebankstiftelsen SpareBank 1 SMN, Endowment Arm are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 SpareBank 1 SMN

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 information suggests that SpareBank 1 SMN insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own kr50m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 57% stake in SpareBank 1 SMN, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. For instance, we've identified 1 warning sign for SpareBank 1 SMN that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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 SpareBank 1 SMN 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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