What type of shareholders make up the share register of Noble Corporation (NYSE: NE)?
The large shareholder groups of Noble Corporation (NYSE: NE) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that were previously state-owned tend to have fewer insiders.
Noble isn’t huge, but he’s not particularly small, either. He has a market cap of US $ 1.4 billion, which means he generally expects to see certain institutions listed on the stock register. In the graph below, we can see that the institutions hold shares in the company. We can zoom in on the different property groups, to find out more about Noble.
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What does institutional ownership tell us about Noble?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
As you can see, Institutional Investors have a significant share of Noble. 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. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Noble’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Since institutional investors own more than half of the issued shares, the board will likely need to pay attention to their preferences. It appears that hedge funds hold 11% of Noble’s shares. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Our data shows that Pacific Investment Management Company LLC is the largest shareholder with 41% of the shares outstanding. Meanwhile, the second and third shareholders respectively hold 5.9% and 5.4% of the outstanding shares.
A more detailed study of the register of shareholders showed us that 3 of the main shareholders hold a considerable share of the ownership of the company, through their 53% 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.
Noble Insider Property
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 note that our data does not show any member of the board of directors owning shares, personally. Since we do not detect insider ownership, we may have missing data. It would therefore be interesting to assess here the remuneration and seniority of the CEO.
General public property
With a 12% stake, the general public, made up mainly of individual investors, has some influence over Noble. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
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. Take risks for example – Noble a 2 warning signs (and 1 which is potentially serious) we think you should be aware of.
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.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. 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 the mentioned stocks.
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