This is what the shareholding structure of Crayon Group Holding ASA (OB: CRAYN) looks like
The large groups of shareholders of Crayon Group Holding ASA (OB: CRAYN) have power over the company. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that were previously state-owned tend to have fewer insiders.
With a market cap of SEK 9.6 billion, Crayon Group Holding is a decent size, so it’s probably on the radar of institutional investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Crayon Group Holding.
See our latest analysis for Crayon Group Holding
What does institutional ownership tell us about Crayon Group Holding?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
Crayon Group Holding already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the earnings history of Crayon Group Holding below. Of course, the future is what really matters.
Crayon Group Holding is not owned by hedge funds. Our data shows that OEP Capital Advisors, LP is the largest shareholder with 29% of the shares outstanding. With respectively 11% and 6.4% of the outstanding shares, SIX Group AG, Asset Management Arm and Karbon Invest AS are the second and third shareholders.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company, which implies that this group has considerable influence on the decision-making of the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider ownership of Crayon Group Holding
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in Crayon Group Holding ASA. It’s a big company, so it’s good to see that level of alignment. Insiders own shares worth NKr 151 million (at current prices). Most would say it shows the alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.
General public property
The general public holds 13% of the capital of Crayon Group Holding. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
With a 29% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
Owned by a private company
It appears that private companies own 7.2% of the shares of Crayon Group Holding. It may be worth exploring this topic further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Consider, for example, the ever-present specter of investment risk. We have identified 1 warning sign with Crayon Group Holding, and understanding them should be part of your investment process.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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