Do Institutions Own Bioextrax AB (publ) (NGM:BIOEX) Shares?

By
Simply Wall St
Published
November 16, 2021
NGM:BIOEX
Source: Shutterstock

If you want to know who really controls Bioextrax AB (publ) (NGM:BIOEX), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Bioextrax is a smaller company with a market capitalization of kr1.1b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Bioextrax.

Check out our latest analysis for Bioextrax

ownership-breakdown
NGM:BIOEX Ownership Breakdown November 17th 2021

What Does The Institutional Ownership Tell Us About Bioextrax?

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.

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

earnings-and-revenue-growth
NGM:BIOEX Earnings and Revenue Growth November 17th 2021

Hedge funds don't have many shares in Bioextrax. Our data suggests that Mohammad H. Ibrahim, who is also the company's Chief Technology Officer, holds the most number of shares at 14%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Rajni Hatti-Kaul is the second largest shareholder owning 12% of common stock, and Nordnet Pensionsförsäkring Ab, Asset Management Arm holds about 7.3% of the company stock. Interestingly, the second-largest shareholder, Rajni Hatti-Kaul is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A deeper look at our ownership data shows that the top 6 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Bioextrax

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.

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 most recent data indicates that insiders own a reasonable proportion of Bioextrax AB (publ). Insiders have a kr373m stake in this kr1.1b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 55% of Bioextrax shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Bioextrax better, we need to consider many other factors. Be aware that Bioextrax is showing 6 warning signs in our investment analysis , and 3 of those are potentially serious...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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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