Which type of shareholder owns the most shares of Annehem Fastigheter AB (STO:ANNE B)?

If you want to know who actually controls Annehem Fastigheter AB (STO:ANNE B), then you will need to look at the composition of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I like to see at least a little insider ownership. As Charlie Munger said “Show me the incentive and I’ll show you the result”.

Annehem Fastigheter is a small company with a market capitalization of 1.4 billion kr, so it may still fly under the radar of many institutional investors. In the graph below, we can see that the institutions own shares in the company. Let’s dig deeper into each owner type to learn more about Annehem Fastigheter.

See our latest analysis for Annehem Fastigheter

OM:ANNE B Distribution of ownership July 20, 2022

What does institutional ownership tell us about Annehem Fastigheter?

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 sizeable share of Annehem Fastigheter. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. 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 Annehem Fastigheter’s historical earnings and earnings below, but keep in mind there’s always more to the story.

OM:ANNE B Earnings and Revenue Growth July 20, 2022

We note that hedge funds have no significant investment in Annehem Fastigheter. The company’s largest shareholder is Ekhaga Utveckling AB with a 21% stake. For context, the second shareholder owns approximately 8.3% of the outstanding shares, followed by an 8.1% ownership by the third shareholder. Axel Granlund, who is the third shareholder, also holds the title of member of the board of directors.

We dug a little deeper and found that 6 of the major shareholders make up about 51% of the register, implying that along with the large shareholders there are a few smaller shareholders, thus balancing everyone’s interests somewhat.

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 a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.

Annehem Fastigheter Insider Property

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders hold a reasonable proportion of Annehem Fastigheter AB. Insiders hold 210 million kr of shares in the company 1.4 billion kr. We would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have been buying or selling.

General public property

With a 32% stake, the general public, consisting mainly of individual investors, has some influence over Annehem Fastigheter. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private equity ownership

The private equity firms hold an 8.3% stake in Annehem Fastigheter. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.

Private Company Ownership

It seems that private companies hold 26% of the shares of Annehem Fastigheter. 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.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with Annehem Fastigheter (at least 2 that are potentially serious), and understanding them should be part of your investment process.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

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.

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