Nordhealth AS' (OB:NORDH) CEO Charles MacBain is the most upbeat insider, and their holdings increased by 21% last week

Key Insights

• Significant insider control over Nordhealth implies vested interests in company growth
• A total of 2 investors have a majority stake in the company with 52% ownership
• Institutions own 19% of Nordhealth

A look at the shareholders of Nordhealth AS (OB:NORDH) can tell us which group is most powerful. With 50% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by kr530m last week.

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

Check out our latest analysis for Nordhealth

What Does The Institutional Ownership Tell Us About Nordhealth?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Nordhealth 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. 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 Nordhealth's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Nordhealth. With a 44% stake, CEO Charles MacBain is the largest shareholder. Capital Research and Management Company is the second largest shareholder owning 7.8% of common stock, and Fourth Swedish National Pension Fund (AP4) holds about 4.1% of the company stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Nordhealth

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.

It seems that insiders own more than half the Nordhealth AS stock. This gives them a lot of power. So they have a kr1.5b stake in this kr3.0b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 31% stake in Nordhealth. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Nordhealth better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Nordhealth you should be aware of.

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.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com