NOS, S.G.P.S., S.A.'s (ELI:NOS) largest shareholders are retail investors who were rewarded as market cap surged €64m last week

Key Insights

• The considerable ownership by retail investors in NOS S.G.P.S indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 17 shareholders
• Institutions own 10% of NOS S.G.P.S

A look at the shareholders of NOS, S.G.P.S., S.A. (ELI:NOS) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 47% ownership. 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, retail investors collectively scored the highest last week as the company hit €1.7b market cap following a 3.8% gain in the stock.

In the chart below, we zoom in on the different ownership groups of NOS S.G.P.S.

Check out our latest analysis for NOS S.G.P.S

What Does The Institutional Ownership Tell Us About NOS S.G.P.S?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

NOS S.G.P.S 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 NOS S.G.P.S, (below). Of course, keep in mind that there are other factors to consider, too.

NOS S.G.P.S is not owned by hedge funds. The company's largest shareholder is Efanor Investimentos SGPS, SA, with ownership of 37%. Meanwhile, the second and third largest shareholders, hold 5.0% and 1.5%, of the shares outstanding, respectively.

A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 50% implying that 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of NOS S.G.P.S

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.

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 NOS, S.G.P.S., S.A. insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own €4.9m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over NOS S.G.P.S. 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

We can see that Private Companies own 37%, of the shares on issue. 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 NOS S.G.P.S better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with NOS S.G.P.S (including 1 which is a bit concerning) .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.