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Every investor in Nano One Materials Corp. ( CVE:NNO ) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Nano One Materials is not a large company by global standards. It has a market capitalization of CA$493m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows thatinstitutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Nano One Materials.
What Does The Institutional Ownership Tell Us About Nano One Materials?
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.
We can see that Nano One Materials does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nano One Materials' historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Nano One Materials. BBK Capital Partners, LLC is currently the company's largest shareholder with 3.8% of shares outstanding. With 3.7% and 1.9% of the shares outstanding respectively, U.S. Global Investors, Inc. and Paul Matysek are the second and third largest shareholders. Paul Matysek, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Dan Blondal directly holds 1.5% of the total shares outstanding.
On studying our ownership data, we found that 15 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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.Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Nano One Materials
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
I can report that insiders do own shares in Nano One Materials Corp.. In their own names, insiders own CA$20m worth of stock in the CA$493m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public -- mostly retail investors -- own 84% of Nano One Materials. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Nano One Materials (1 doesn't sit too well with us) that you should be aware of.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
This article by Simply Wall St is general in nature. 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.
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