Do Institutions Own American Shipping Company ASA (OB:AMSC) Shares?

By
Simply Wall St
Published
May 28, 2021
OB:AMSC
Source: Shutterstock

If you want to know who really controls American Shipping Company ASA (OB:AMSC), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.

American Shipping is not a large company by global standards. It has a market capitalization of kr1.9b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about American Shipping.

See our latest analysis for American Shipping

ownership-breakdown
OB:AMSC Ownership Breakdown May 29th 2021

What Does The Institutional Ownership Tell Us About American Shipping?

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.

As you can see, institutional investors have a fair amount of stake in American Shipping. 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. 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 American Shipping, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
OB:AMSC Earnings and Revenue Growth May 29th 2021

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in American Shipping. The Resource Group TRG AS is currently the largest shareholder, with 19% of shares outstanding. With 17% and 16% of the shares outstanding respectively, Skandinaviska Enskilda Banken AB, Private Banking, Investment Banking, and Insurance Arm and DNB Asset Management AS are the second and third largest shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of American Shipping

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. 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.

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.

Our information suggests that American Shipping Company ASA insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about kr5.4m worth of stock. This compares to a market capitalization of kr1.9b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 19% ownership, the general public have some degree of sway over American Shipping. 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 Company Ownership

It seems that Private Companies own 26%, of the American Shipping 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 American Shipping better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with American Shipping .

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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