Key Insights

• Significant insider control over FLEX LNG implies vested interests in company growth

• The top 4 shareholders own 50% of the company

• 20% of FLEX LNG is held by Institutions

Every investor in FLEX LNG Ltd. (NYSE:FLNG) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 7.8% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about FLEX LNG.

See our latest analysis for FLEX LNG

What Does The Institutional Ownership Tell Us About FLEX LNG?

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.

FLEX LNG already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at FLEX LNG's earnings history below. Of course, the future is what really matters.

FLEX LNG is not owned by hedge funds. Our data shows that John Fredriksen is the largest shareholder with 43% of shares outstanding. For context, the second largest shareholder holds about 2.8% of the shares outstanding, followed by an ownership of 2.3% by the third-largest shareholder.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 4 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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of FLEX LNG

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.