P/F Bakkafrost (OB:BAKKA) institutional owners may be pleased with recent gains after 19% loss over the past year

Key Insights

• Given the large stake in the stock by institutions, P/F Bakkafrost's stock price might be vulnerable to their trading decisions
• A total of 22 investors have a majority stake in the company with 50% ownership
• Insider ownership in P/F Bakkafrost is 13%

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Every investor in P/F Bakkafrost (OB:BAKKA) should be aware of the most powerful shareholder groups. With 49% stake, institutions 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).

Institutional investors would appreciate the 3.7% increase in share price last week, given their one-year losses have totalled a disappointing 19%.

In the chart below, we zoom in on the different ownership groups of P/F Bakkafrost.

View our latest analysis for P/F Bakkafrost

What Does The Institutional Ownership Tell Us About P/F Bakkafrost?

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 P/F Bakkafrost does have institutional investors; and they hold a good portion of the company's stock. 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. 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 P/F Bakkafrost's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in P/F Bakkafrost. Looking at our data, we can see that the largest shareholder is the CEO Johan Jacobsen with 7.8% of shares outstanding. The second and third largest shareholders are Sprucegrove Investment Management Ltd and Folketrygdfondet, with an equal amount of shares to their name at 5.0%.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 22 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

Insider Ownership Of P/F Bakkafrost

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of P/F Bakkafrost. It is very interesting to see that insiders have a meaningful kr4.3b stake in this kr32b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over P/F Bakkafrost. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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. Take risks for example - P/F Bakkafrost has 1 warning sign we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.