Bergen Carbon Solutions AS (OB:BCS) share price fell 12% last week; private companies would not be happy

A look at the shareholders of Bergen Carbon Solutions AS (OB:BCS) can tell us which group is the most powerful. We can see that private companies hold the lion’s share of the company with 27% ownership. In other words, the group faces the maximum upside potential (or downside risk).

As the market capitalization fell to 1.2 billion kr last week, private companies would have suffered the highest losses than any other group of corporate shareholders.

Let’s dive deeper into each type of Bergen Carbon Solutions owner, starting with the table below.

However, if you prefer to see where opportunities and risks are within the BCS industryyou can check out our analysis on the chemical industry NO.

OB: Distribution of BCS ownership on September 7, 2022

What does institutional ownership tell us about Bergen Carbon Solutions?

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 Bergen Carbon Solutions has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Bergen Carbon Solutions’ historic earnings and revenue below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth
OB: BCS Earnings and Revenue Growth September 7, 2022

Bergen Carbon Solutions is not owned by hedge funds. Saga Pure ASA is currently the largest shareholder, with 22% of the outstanding shares. Awilhelmsen AS is the second largest shareholder with 11% of the ordinary shares and Finn Blydt-Svendsen owns approximately 8.0% of the company’s shares. Finn Blydt-Svendsen, who is the third shareholder, also holds the title of member of the board of directors.

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 a considerable influence on the decision-making of the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There is some analyst coverage of the stock, but it could still become better known over time.

Bergen Carbon Solutions Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders hold a significant stake in Bergen Carbon Solutions AS. Its market capitalization is only 1.2 billion kr and insiders hold 209 million kr worth of shares in their own name. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, including retail investors, owns 25% of the company’s capital and therefore cannot be easily ignored. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

It appears that private companies own 27% of the shares of Bergen Carbon Solutions. It might be worth exploring this 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 company.

Ownership of a public company

Public companies currently own 22% of the shares of Bergen Carbon Solutions. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Bergen Carbon Solutions, we need to consider many other factors. For example, we have identified 4 warning signs for Bergen Carbon Solutions (I’m not very good with us) that you should be aware of.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Karen J. Nelson