This is what the shareholding structure of NFON AG (ETR: NFN) looks like
A look at the shareholders of NFON AG (ETR: NFN) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that have been privatized tend to have low insider ownership.
NFON is a small company with a market capitalization of 263 million euros, so it may still go under the radar of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different property groups, to find out more about NFON.
See our latest analysis for NFON
What does institutional ownership tell us about NFON?
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.
NFON already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out NFON’s earnings history below. Of course, the future is what really matters.
NFON is not owned by hedge funds. The main shareholder of the company is Milestone Venture Capital GmbH, with a 31% stake. In comparison, the second and third shareholders hold around 23% and 4.5% of the capital.
A more detailed study of the register of shareholders showed us that 2 of the major shareholders hold a considerable share of the ownership of the company, through their 54% stake.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
NFON Insider Ownership
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our data cannot confirm that board members personally own shares. Not all jurisdictions have the same rules for disclosing insider ownership, and it’s possible that we’ve been missing something here. So you can click here to learn more about the CEO.
General public property
The general public holds 21% of the capital of NFON. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
With a 54% stake, private equity firms could influence NFON’s board of directors. Some might like this, as sometimes private capital is activists holding management accountable. But other times, the private equity sells, after you take the company public.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Concrete example: we have spotted 2 warning signs for NFON you must be aware.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
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 documents. Simply Wall St has no position in any of the stocks mentioned.
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