Stock Analysis

What Kind Of Shareholder Appears On The SpareBank 1 BV's (OB:SBVG) Shareholder Register?

OB:SOON
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If you want to know who really controls SpareBank 1 BV (OB:SBVG), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

SpareBank 1 BV is a smaller company with a market capitalization of kr2.5b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about SpareBank 1 BV.

View 1 warning sign we detected for SpareBank 1 BV

OB:SBVG Ownership Summary, December 23rd 2019
OB:SBVG Ownership Summary, December 23rd 2019

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

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 BV already has institutions on the share registry. Indeed, they own 51% of 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at SpareBank 1 BV's earnings history, below. Of course, the future is what really matters.

OB:SBVG Income Statement, December 23rd 2019
OB:SBVG Income Statement, December 23rd 2019

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. SpareBank 1 BV is not owned by hedge funds. Our data shows that SpareBank 1 Stiftelsen BV, Endowment Arm is the largest shareholder with 22% of shares outstanding. With 17% and 2.7% of the shares outstanding respectively, Sparebankstiftelsen Nøtterøy-Tønsberg, Endowment Arm and Eika Kapitalforvaltning are the second and third largest shareholders.

We also observed that the top 10 shareholders account for 51% of the register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of SpareBank 1 BV

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in SpareBank 1 BV. As individuals, the insiders collectively own kr44m worth of the kr2.5b company. When analysing a company, looking at ownership may seem a logical place to start. However, there are many other factors to consider, such as the risks within the company itself. For example, we've discovered 1 warning sign for SpareBank 1 BV which any shareholder or potential investor should be aware of.

General Public Ownership

With a 39% ownership, the general public have some degree of sway over SBVG. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 7.9%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand SpareBank 1 BV better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.