Exploring NN, Inc. (NNBR) Investor Profile: Who’s Buying and Why?

You've seen the stock price for NN, Inc. (NNBR) drop by over 52% since late 2024, trading near the 52-week low of $1.41 as of mid-November 2025, and you have to wonder: who is buying this stock, and what do they see that the broader market is missing? Honestly, the investor profile is defintely not retail-driven; institutional money holds a massive stake, with ownership sitting around 68.54%, held by 182 institutional owners including major players like Vanguard Group Inc. and Corre Partners Management. These seasoned firms aren't buying on a whim; they are focused on the company's strategic turnaround and the expected operational leverage.

The core thesis is simple: the company is on track for a record adjusted EBITDA for the full year 2025, projecting full-year net sales between $430 million and $460 million, with Q4 adjusted EBITDA margin expected to hit 14%. That's a huge jump, plus management is guiding for $14 million to $16 million in free cash flow for 2025, which is a significant turning point. So, are the institutional buyers betting on the $800 million new-business pipeline and M&A activity to finally close the valuation gap, or are they getting ahead of a potential preferred equity refinancing? Let's break down the major holders and the precise financial metrics that underpin this high-stakes conviction play.

Who Invests in NN, Inc. (NNBR) and Why?

You're looking at NN, Inc. (NNBR), a company in the middle of a significant strategic pivot, and you need to know who is betting on this transformation and why. The investor base is a mix of institutional players who are actively driving change and a large retail component, all drawn by the potential for a high-upside turnaround.

The core investment thesis for NN, Inc. centers on the successful execution of its strategic shift away from lower-margin automotive exposure toward high-growth, high-precision components for the medical and electrical sectors. This is a classic value-to-growth story, but it's defintely not without risk, given the company's high stock volatility (a beta of 2.85).

Key Investor Types: A Mixed Ownership Structure

The ownership profile of NN, Inc. is characterized by a high concentration of institutional and insider holdings, which often signals a company where large investors have a vested interest in management's strategic direction. While the exact percentage fluctuates, institutional investors hold a substantial portion of the shares, giving them significant influence over corporate decisions.

For a company undergoing a turnaround, the presence of major institutional holders is crucial. These are the funds that have done the deep dive on the restructuring plan.

• Institutional Investors: Entities like mutual funds, pension funds, and hedge funds. They hold a significant stake, with some sources indicating around 50% ownership as of mid-2025. Their presence suggests a belief in the long-term value creation from the strategic pivot.
• Retail Investors: Individual investors who hold a large collective stake, with some data suggesting they hold a majority of the remaining shares. They are often attracted to the stock's low price and high potential upside if the turnaround succeeds, a classic small-cap speculation.
• Insiders: Management and board members. Their buying activity, such as the recent purchases by President and CEO Harold C. Bevis, signals confidence in the company's future performance.

Here's a snapshot of some of the largest institutional holders and their reported positions in the first half of 2025, which shows you exactly who is making the big bets:

Here's the quick math: when you see activist-style funds like Legion Partners and Corre Partners holding top spots, you know they aren't just sitting back. They expect results.

Investment Motivations: Growth, Value, and Transformation

The primary attraction to NN, Inc. is the significant operating leverage expected from its ongoing transformation. Investors are looking past the near-term revenue softness, which saw Q3 2025 net sales at $103.9 million, and focusing on the future earnings power.

• Strategic Growth: The shift to higher-margin markets is key. The company is launching over 100 new programs in 2025, which are projected to generate more than $45 million in future annual sales at full run-rate. The Power Solutions segment, which services the electrical and medical markets, is already seeing growth.
• Turnaround Value: The stock is viewed by many as a deep value play. The average 12-month analyst price target is $4.00, suggesting a massive upside from its current price. This gap between the current valuation and the forecast is a huge magnet for value investors.
• Margin Expansion: Management's guidance for the full year 2025 projects adjusted EBITDA between $53 million and $63 million. More importantly, they expect Q4 2025 adjusted EBITDA and gross margins to hit their long-term goals of 14% and 20%, respectively, well ahead of schedule.

The company is also anticipating a third consecutive year of positive free cash flow in 2025, which is a strong signal of operational improvement and a key metric for value investors. For a deeper look at how these financial metrics are trending, you should check out Breaking Down NN, Inc. (NNBR) Financial Health: Key Insights for Investors.

Investment Strategies: Activism Meets Long-Term Holding

Given the company's profile-a small-cap industrial manufacturer with a high-beta stock and an ongoing transformation-investor strategies are diverse but generally aggressive.

• Activist/Event-Driven Investing: The presence of activist investors, indicated by Schedule 13D filings, means some investors are actively pushing for changes in business strategy or governance. They are event-driven, looking for catalysts like the planned preferred equity refinancing to unlock shareholder value.
• Long-Term Growth Holding: Investors who believe in the Power Solutions segment's pivot to medical and electrical components are adopting a multi-year holding strategy. They are looking past the current automotive sector headwinds and focusing on the expected $200 million new business wins target over the three-year period.
• Short-Term Trading: The stock's high volatility (beta of 2.85) makes it a target for short-term traders. These investors capitalize on price swings around key events, like earnings announcements (Q2 2025 saw a 2.1% price rise despite a revenue miss) or news about new program launches.

What this estimate hides is that a high-beta stock can cut both ways; the potential for a 198.51% price upside is matched by significant downside risk if the strategic transformation falters.

Institutional Ownership and Major Shareholders of NN, Inc. (NNBR)

The core takeaway for NN, Inc. (NNBR) is that institutional investors hold a significant, yet recently volatile, stake, controlling roughly 50% of the company's shares as of mid-2025, which gives them substantial influence over strategic decisions. The total institutional value of long positions is approximately $79.05 million. This means that any shift in their collective sentiment-buying or selling-can dramatically move the stock price, which was trading around $1.66 per share as of November 7, 2025.

Top Institutional Investors and Their Stakes

When you look at who is actually buying and holding NN, Inc., you see a mix of activist funds and major index players. The company has 182 institutional owners in total. This is not a stock dominated by individual retail traders; rather, it's a name where large, sophisticated money managers have decided to take a position, often with a clear thesis on a turnaround or a strategic shift.

Here's a quick look at the top institutional holders, based on the most recent 13F and 13G filings for the 2025 fiscal year:

The presence of both activist-style funds, like Legion Partners, and passive giants, like Vanguard Group Inc, suggests two different investment theses are at play. The activists are likely pushing for operational and balance sheet improvements, while the index funds hold the stock because it's part of a benchmark they track.

Recent Shifts in Institutional Ownership

The recent trend shows some institutional selling pressure, which is something you defintely need to watch. In the most recent quarter, the total number of institutional shares (Long) decreased by 6.29%, translating to a net sale of approximately 2.55 million shares. This selling contributed to the stock's year-over-year decline of 52.44% as of November 2025.

But, it's not a universal exit. Some institutions were actively accumulating shares:

• Nantahala Capital Management, LLC increased its stake by 1,000,000 shares as of June 30, 2025.
• Paradigm Capital Management Inc/ny added 483,952 shares in the same period.

Here's the quick math: the overall number of institutional owners actually dropped by 4.71% in the last reporting quarter, so a few large buyers were offset by a greater number of smaller funds reducing their exposure. This divergence signals a lack of consensus among the big money on NN, Inc.'s near-term trajectory.

Impact on Stock Price and Corporate Strategy

Institutional investors are the gatekeepers here. Since they collectively own a majority of the stock, their influence is paramount. A Schedule 13D filing, for example, is a public declaration that an investor holds over 5% and intends to actively pursue a change in business strategy, not just sit passively.

The board and management of NN, Inc. are acutely aware of this scrutiny. You see this reflected in their strategic focus for the 2025 fiscal year:

• Aggressive new business wins, securing $34.5 million in new awards through Q3 2025.
• A focus on balance sheet action, specifically progressing a preferred equity refinancing initiative.
• A forecast for a record adjusted EBITDA for the full fiscal year 2025.

These actions, like the push for a record adjusted EBITDA and the refinancing, are direct responses to the demands for improved financial performance and capital structure from these large owners. The stock's volatility is a direct consequence of the buying and selling patterns of this concentrated group, plus, if two large institutional investors try to sell out at the same time, the price will drop hard. If you want to understand the long-term vision they are pushing for, you should review the Mission Statement, Vision, & Core Values of NN, Inc. (NNBR).

What this estimate hides is the risk of a mass institutional exodus if the company misses its forecast of reaching a 14% adjusted EBITDA margin in Q4 2025. The high level of institutional ownership is a double-edged sword: it provides a floor of professional interest but also creates a high-stakes environment where one misstep can trigger a wave of selling.

Your next step is clear: track the 13F filings for Q4 2025 closely, especially for Corre Partners Management and Legion Partners Asset Management, to see if the recent selling pressure has continued or reversed.

Key Investors and Their Impact on NN, Inc. (NNBR)

You're looking at NN, Inc. (NNBR) because the narrative is clearly shifting from a painful turnaround to a growth story, and you want to know which smart money is already in the door. The direct takeaway is that a handful of institutional investors, including a key activist fund, hold a significant portion of the float, and their presence is directly tied to the company's aggressive, margin-focused strategic plan.

NN, Inc. is a nano-cap company with a market capitalization around $90 million, so the moves of a few large funds carry a lot of weight. As of the third quarter of 2025, institutional owners collectively held a total of approximately 38,028,469 shares, valued at roughly $53 million. That's a concentrated investor base, and it means their buying or selling can move the stock price defintely more than in a large-cap company.

The Activist and Institutional Anchor Investors

The investor profile for NN, Inc. is dominated by a mix of specialized small-cap funds and a prominent activist investor. This isn't your typical passive Vanguard position; these are funds that see deep value and are actively pushing for operational changes.

The most important names to watch are Corre Partners Management, LLC and Legion Partners Asset Management, LLC. Legion is a known activist fund, and their involvement signals that the company's current management team is under pressure to deliver on the strategic transformation plan. Corre Partners Management, LLC is also a major holder, reinforcing the conviction in the turnaround.

Here's a quick look at the largest institutional stakes as of mid-to-late 2025:

Investor Influence: Driving the Margin-Focused Turnaround

The influence of these investors is not subtle; it's the engine behind the company's current focus on profitability and deleveraging. You can see this influence directly in the 2025 financial targets. The management team is laser-focused on hitting key margin metrics that were likely demanded by these large holders.

For example, the company is projecting that its Q4 2025 adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) will hit a long-term goal of 14%, and adjusted gross margin will reach 20%. This is more than two years ahead of their original plan, and it shows the urgency of the turnaround. The activist presence means management knows they must execute or face further pressure on the board or strategy. You can dive deeper into this transformation by reading Breaking Down NN, Inc. (NNBR) Financial Health: Key Insights for Investors.

• Focus on $15 million in strategic cost reduction for 2025.
• Push for preferred equity refinancing to strengthen the balance sheet.
• Aggressive new business wins target of $200 million for 2025.

Recent Moves and What They Signal

The most recent notable moves from the company's side-which are a direct reflection of investor demands-center on capital structure optimization and strategic growth. The company is actively pursuing preferred equity refinancing efforts to clean up the balance sheet, a critical step for a company with a history of high debt.

The focus on M&A (Mergers and Acquisitions) to deleverage and add value is also a key signal. This tells you the large investors are looking for a clear path to a higher valuation, either through operational excellence or strategic sales/acquisitions. When an activist is involved, every move is scrutinized. The market is reacting to the execution: NN, Inc. reported $182 million in new business awards year-to-date through August 2025, keeping them on track for their full-year target. That's the kind of concrete execution the big funds are buying into.

Here's the quick math: with the stock trading around $1.66 per share as of November 2025, and the company forecasting full-year 2025 sales guidance between $420.0 million and $440.0 million, the current investor base is betting on a significant multiple expansion once the 14% EBITDA margin is consistently achieved. The risk is high, but the potential upside, driven by this focused investor pressure, is clear.

Market Impact and Investor Sentiment

You are seeing a classic split in NN, Inc. (NNBR) right now: insider confidence is high, but the stock price volatility is intense. The overall investor sentiment is cautiously optimistic, driven by the company's operational turnaround, but it's tempered by recent market reactions to earnings misses.

The company's management and directors are defintely signaling confidence; insider sentiment is currently Positive, with 12 different insiders making recent acquisitions. Here's the quick math: over the last year, insiders bought or received $24.7 million worth of shares, compared to selling $4.66 million in total. That's a strong signal that the people who know the business best believe the stock is undervalued.

Still, the market is a realist, and the stock is trading near its 52-week low. As of November 17, 2025, the share price was $1.41. This is a tough environment for small-cap industrial companies.

• Insiders are buying; they see a deep discount.
• The market is punishing missed forecasts.
• Institutional holders are the primary owners.

Recent Market Reactions and Ownership Dynamics

The stock market has reacted sharply to both good operational news and poor financial reporting. For example, the stock price had an impressive run, gaining 32% in the month leading up to August 30, 2025, likely on the back of strong business updates. However, the market quickly reversed course after the Q3 2025 earnings report on October 30, 2025.

The stock plummeted 15% to $1.71 following that Q3 report. Why the drop? NN, Inc. reported an Earnings Per Share (EPS) of -$0.01, which was a 200% miss against the expected $0.01, and revenue of $103.9 million fell short of the $113.02 million forecast. This shows that while the long-term narrative is improving, near-term execution is critical for investor trust.

Institutional investors hold the majority of the float. There are 182 institutional owners who have filed with the SEC, holding a total of 38,028,469 shares. These major shareholders include firms like Corre Partners Management, LLC, Legion Partners Asset Management, LLC, and The Vanguard Group Inc. Their continued holding, despite the volatility, suggests a belief in the long-term transformation plan, which you can read more about in Breaking Down NN, Inc. (NNBR) Financial Health: Key Insights for Investors.

Analyst Perspectives and Future Outlook

Wall Street analysts are generally seeing significant upside potential, even with the recent stock price struggles. The consensus rating from a group of analysts is a Hold, but another group gives a Moderate Buy consensus. The average 12-month price target is between $4.00 and $5.00, representing a massive forecasted upside of up to 244.83% from the recent price.

Analysts are betting on the company's operational goals for the 2025 fiscal year. NN, Inc. expects full-year 2025 Adjusted EBITDA to reach an annual record, ranging between $53 million and $63 million. This performance is expected to reflect a third consecutive year of growth in both dollar amount and as a percentage of sales. The key targets are hitting a Q4 2025 adjusted EBITDA margin of 14% and an adjusted gross margin of 20%, goals that are more than two years ahead of the original plan.

Here's a snapshot of the 2025 fiscal year outlook:

The analyst confidence is tied to the company's new business pipeline, which is over $800 million across more than 800 new programs, with a hit rate greater than 20%. This pipeline is the real engine for future sales and margin expansion. What this estimate hides, however, is the execution risk inherent in launching over 100 new programs in 2025 alone. If onboarding takes 14+ days, churn risk rises, and so does the risk to the 2026 sales growth forecast.

Action for you: Monitor the Q4 2025 earnings release closely for confirmation of the 14% Adjusted EBITDA margin and any updates on the preferred equity refinancing initiative. That balance sheet move is the next big catalyst.