While institutions invested in Cibus Nordic Real Estate AB (publ) (STO:CIBUS) benefited from last week's 11% gain, retail investors stood to gain the most

Key Insights

• Significant control over Cibus Nordic Real Estate by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 45% ownership
• Institutional ownership in Cibus Nordic Real Estate is 33%

To get a sense of who is truly in control of Cibus Nordic Real Estate AB (publ) (STO:CIBUS), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 52% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Retail investors gained the most after market cap touched kr6.6b last week, while institutions who own 33% also benefitted.

In the chart below, we zoom in on the different ownership groups of Cibus Nordic Real Estate.

View our latest analysis for Cibus Nordic Real Estate

What Does The Institutional Ownership Tell Us About Cibus Nordic Real Estate?

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 Cibus Nordic Real Estate. 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 Cibus Nordic Real Estate, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Cibus Nordic Real Estate. Our data shows that Fourth Swedish National Pension Fund (AP4) is the largest shareholder with 5.5% of shares outstanding. AB Sagax (publ) is the second largest shareholder owning 4.9% of common stock, and Lansforsakringar Fondforvaltning AB holds about 4.5% of the company stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Cibus Nordic Real Estate

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.

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.

We can see that insiders own shares in Cibus Nordic Real Estate AB (publ). In their own names, insiders own kr212m worth of stock in the kr6.6b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 52% stake in Cibus Nordic Real Estate, suggesting it is a fairly popular stock. 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.

Private Company Ownership

Our data indicates that Private Companies hold 7.2%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 4.9% of Cibus Nordic Real Estate stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Cibus Nordic Real Estate better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Cibus Nordic Real Estate (of which 1 is significant!) you should know about.

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.