Onward Medical N.V.’s (EBR:ONWD) biggest owners are private equity firms who got richer after stock soared 39% last week

Onward Medical N.V.’s (EBR:ONWD) biggest owners are private equity firms who got richer after stock soared 39% last week

If you want to know who really controls Onward Medical N.V. (EBR:ONWD), then you’ll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 34% to be precise, is private equity firms. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private equity firms collectively scored the highest last week as the company hit €214m market cap following a 39% gain in the stock.

Let’s delve deeper into each type of owner of Onward Medical, beginning with the chart below.

However if you’d rather see where the opportunities and risks are within ONWD’s industry, you can check out our analysis on the XX Medical Equipment industry.

ownership-breakdown
ENXTBR:ONWD Ownership Breakdown September 17th 2022

What Does The Institutional Ownership Tell Us About Onward Medical?

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 Onward Medical does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Onward Medical’s historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
ENXTBR:ONWD Earnings and Revenue Growth September 17th 2022

Onward Medical is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Nrt Holdings Llc with 12% of shares outstanding. With 12% and 11% of the shares outstanding respectively, INKEF Netherlands Manager B.V. and EQT Life Sciences are the second and third largest shareholders. Furthermore, CEO David Marver is the owner of 3.2% of the company’s shares.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Onward Medical

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can report that insiders do own shares in Onward Medical N.V.. It has a market capitalization of just €214m, and insiders have €14m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Onward Medical. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 34%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 15%, of the shares on issue. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Onward Medical better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we’ve spotted with Onward Medical (including 2 which are potentially serious) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Valuation is complex, but we’re helping make it simple.

Find out whether Onward Medical is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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