Stock Analysis

Following recent decline, Odfjell SE's (OB:ODF) top shareholder Top Key Executive Laurence Odfjell sees holdings value drop by 7.6%

OB:ODF
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Key Insights

  • Insiders appear to have a vested interest in Odfjell's growth, as seen by their sizeable ownership
  • 52% of the business is held by the top 2 shareholders
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Odfjell SE (OB:ODF), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to kr9.6b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of Odfjell.

Check out our latest analysis for Odfjell

ownership-breakdown
OB:ODF Ownership Breakdown November 5th 2024

What Does The Institutional Ownership Tell Us About Odfjell?

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.

As you can see, institutional investors have a fair amount of stake in Odfjell. 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. 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 Odfjell's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
OB:ODF Earnings and Revenue Growth November 5th 2024

Hedge funds don't have many shares in Odfjell. From our data, we infer that the largest shareholder is Laurence Odfjell (who also holds the title of Top Key Executive) with 42% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Fiducia Ltd. is the second largest shareholder owning 10% of common stock, and Pareto Asset Management AS holds about 5.3% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Odfjell

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Our most recent data indicates that insiders own the majority of Odfjell SE. This means they can collectively make decisions for the company. Given it has a market cap of kr9.6b, that means they have kr4.9b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Odfjell. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 27%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 3 warning signs for Odfjell (1 makes us a bit uncomfortable!) 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.

About OB:ODF

Odfjell

Provides services for the transportation and storage of bulk liquid chemicals, acids, edible oils, and other specialty products in North America, South America, Norway, the Netherlands, rest of Europe, the Middle East, Asia, Africa, and Australasia.

Very undervalued with solid track record and pays a dividend.