Individual investors among LINK Mobility Group Holding ASA's (OB:LINK) largest shareholders, saw gain in holdings value after stock jumped 19% last week

By
Simply Wall St
Published
March 15, 2022
OB:LINK
Source: Shutterstock

A look at the shareholders of LINK Mobility Group Holding ASA (OB:LINK) can tell us which group is most powerful. With 34% stake, individual 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).

As a result, individual investors were the biggest beneficiaries of last week’s 19% gain.

In the chart below, we zoom in on the different ownership groups of LINK Mobility Group Holding.

See our latest analysis for LINK Mobility Group Holding

ownership-breakdown
OB:LINK Ownership Breakdown March 15th 2022

What Does The Institutional Ownership Tell Us About LINK Mobility Group Holding?

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 LINK Mobility Group Holding 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 LINK Mobility Group Holding's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
OB:LINK Earnings and Revenue Growth March 15th 2022

We note that hedge funds don't have a meaningful investment in LINK Mobility Group Holding. ABRY Partners, LLC is currently the largest shareholder, with 32% of shares outstanding. With 5.5% and 5.4% of the shares outstanding respectively, Swedbank Robur Fonder AB and Karbon Invest AS are the second and third largest shareholders.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 LINK Mobility Group Holding

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.

Our information suggests that LINK Mobility Group Holding ASA insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just kr4.7b, and the board has only kr39m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in LINK Mobility Group Holding. 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.

Private Equity Ownership

With a stake of 32%, private equity firms could influence the LINK Mobility Group Holding board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 8.9%, of the LINK Mobility Group Holding 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand LINK Mobility Group Holding better, we need to consider many other factors. For example, we've discovered 2 warning signs for LINK Mobility Group Holding that you should be aware of before investing here.

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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