Hexagon Composites ASA's (OB:HEX) market cap dropped kr571m last week; individual investors who hold 44% were hit as were institutions

Key Insights

• Significant control over Hexagon Composites by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 16 shareholders own 51% of the company
• Recent purchases by insiders

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To get a sense of who is truly in control of Hexagon Composites ASA (OB:HEX), it is important to understand the ownership structure of the business. With 44% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 26% came under pressure after market cap dropped to kr3.8b last week,retail investors took the most losses.

In the chart below, we zoom in on the different ownership groups of Hexagon Composites.

View our latest analysis for Hexagon Composites

What Does The Institutional Ownership Tell Us About Hexagon Composites?

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 Hexagon Composites does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Hexagon Composites' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Hexagon Composites. Mitsui & Co., Ltd. is currently the largest shareholder, with 16% of shares outstanding. Flakk Gruppen AS is the second largest shareholder owning 7.4% of common stock, and MP Pensjon PK holds about 5.7% of the company stock.

A closer look at our ownership figures suggests that the top 16 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Hexagon Composites

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own some shares in Hexagon Composites ASA. As individuals, the insiders collectively own kr58m worth of the kr3.8b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 44% stake in Hexagon Composites. 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

It seems that Private Companies own 12%, of the Hexagon Composites stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

We can see that public companies hold 16% of the Hexagon Composites shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hexagon Composites better, we need to consider many other factors. Take risks for example - Hexagon Composites has 1 warning sign we think you should be aware of.

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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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.