Stenhus Fastigheter i Norden AB (publ) (STO:SFAST) share price fell 11% last week; individual investors would not be happy

To get an idea of ​​who really controls Stenhus Fastigheter i Norden AB (publ) (STO: SFAST), it is important to understand the ownership structure of the company. We can see that individual investors hold the lion’s share of the company with 48% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

As the market capitalization fell to 3.2 billion kr last week, individual investors would have suffered the highest losses than any other group of shareholders in the company.

In the table below we zoom in on the different ownership groups of Stenhus Fastigheter i Norden.

Discover our latest analysis for Stenhus Fastigheter i Norden

OM: SFAST ownership distribution June 16, 2022

What does institutional ownership tell us about Stenhus Fastigheter i Norden?

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.

As you can see, institutional investors hold a significant share of Stenhus Fastigheter i Norden. 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 Stenhus Fastigheter i Norden’s historical earnings and earnings below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
OM: SFAST Profit and Revenue Growth June 16, 2022

Hedge funds do not have many shares in Stenhus Fastigheter i Norden. Looking at our data, we can see that the major shareholder is Sterner Stenhus AB with 33% of the shares outstanding. In comparison, the second and third shareholders hold approximately 9.6% and 4.8% of the shares.

We also observed that the top 6 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Insider property of Stenhus Fastigheter i Norden

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 data suggests that insiders hold less than 1% of Stenhus Fastigheter i Norden AB (publ) in their own name. But they may have an indirect interest through a corporate structure that we have not noted. It seems that the board of directors holds about 16 million kr of shares. This compares to a market cap of 3.2 billion kr. We generally like to see a more invested board. However, it may be useful to check whether these insiders have bought.

General public property

The general public, who are usually individual investors, hold a 48% stake in Stenhus Fastigheter i Norden. While this size of ownership may 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 seems that private companies hold 33% of the shares of Stenhus Fastigheter i Norden. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Ownership of a public company

It seems to us that public companies hold 9.6% of Stenhus Fastigheter i Norden. It’s hard to say for sure, but it suggests they have intertwined business interests. This could be a strategic stake, so it’s worth monitoring this space for ownership changes.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Stenhus Fastigheter i Norden, we must consider many other factors. To do this, you need to find out about the 5 warning signs we spotted with Stenhus Fastigheter i Norden (including 2 that make us uncomfortable).

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.

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 in which 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.

Karen J. Nelson