Elliptic Laboratories ASA's (OB:ELABS) market cap rose kr166m last week; retail investors who hold 56% profited and so did insiders

Key Insights

• Significant control over Elliptic Laboratories by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 16 investors have a majority stake in the company with 44% ownership
• Insiders own 23% of Elliptic Laboratories

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To get a sense of who is truly in control of Elliptic Laboratories ASA (OB:ELABS), it is important to understand the ownership structure of the business. With 56% 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 retail investors were the group that reaped the most benefits after last week’s 16% price gain, insiders also received a 23% cut.

Let's delve deeper into each type of owner of Elliptic Laboratories, beginning with the chart below.

Check out our latest analysis for Elliptic Laboratories

What Does The Institutional Ownership Tell Us About Elliptic Laboratories?

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.

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

Hedge funds don't have many shares in Elliptic Laboratories. The company's largest shareholder is Tore Engebretsen, with ownership of 9.6%. MP Pensjon PK is the second largest shareholder owning 8.5% of common stock, and Edvin Austbo holds about 7.0% of the company stock. Edvin Austbo, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

A deeper look at our ownership data shows that the top 16 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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. 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 Elliptic Laboratories

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.

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.

It seems insiders own a significant proportion of Elliptic Laboratories ASA. It has a market capitalization of just kr1.2b, and insiders have kr266m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 56% of Elliptic Laboratories shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

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 example, we've discovered 1 warning sign for Elliptic Laboratories that you should be aware of before investing here.

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.