Nova Ljubljanska Banka d.d. (LJSE:NLBR) surges 3.5%; individual investors who own 46% shares profited along with institutions

Key Insights

• The considerable ownership by individual investors in Nova Ljubljanska Banka d.d indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 18 shareholders
• Institutional ownership in Nova Ljubljanska Banka d.d is 29%

Every investor in Nova Ljubljanska Banka d.d. (LJSE:NLBR) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 3.5% increase in the stock price last week, individual investors profited the most, but institutions who own 29% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Nova Ljubljanska Banka d.d, beginning with the chart below.

See our latest analysis for Nova Ljubljanska Banka d.d

What Does The Institutional Ownership Tell Us About Nova Ljubljanska Banka d.d?

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.

We can see that Nova Ljubljanska Banka d.d does have institutional investors; and they hold a good portion of the company's stock. 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 Nova Ljubljanska Banka d.d, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nova Ljubljanska Banka d.d. Slovenia is currently the company's largest shareholder with 25% of shares outstanding. Schroder Investment Management Limited is the second largest shareholder owning 9.1% of common stock, and Capital Research and Management Company holds about 3.8% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Nova Ljubljanska Banka d.d

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 less than 1% of Nova Ljubljanska Banka d.d.. Keep in mind that it's a big company, and the insiders own €618k worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Nova Ljubljanska Banka d.d. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Nova Ljubljanska Banka d.d better, we need to consider many other factors. Take risks for example - Nova Ljubljanska Banka d.d has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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.