Could QPR Software Oyj’s (HEL:QPR1V) Investor Composition Influence The Stock Price?

If you want to know who really controls QPR Software Oyj (HEL:QPR1V), then you’ll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.

QPR Software Oyj is a smaller company with a market capitalization of €28m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it’s seems that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about QPR Software Oyj.

Check out our latest analysis for QPR Software Oyj

HLSE:QPR1V Ownership Summary, January 9th 2020
HLSE:QPR1V Ownership Summary, January 9th 2020

What Does The Institutional Ownership Tell Us About QPR Software Oyj?

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.

QPR Software Oyj already has institutions on the share registry. Indeed, they own 7.5% of the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 QPR Software Oyj’s earnings history, below. Of course, the future is what really matters.

HLSE:QPR1V Income Statement, January 9th 2020
HLSE:QPR1V Income Statement, January 9th 2020

Hedge funds don’t have many shares in QPR Software Oyj. Our data shows that Leverandørselskabet Danish Crown AmbA is the largest shareholder with 14% of shares outstanding. Next, we have Pohjolan Rahoitus Oy and Kesko Oyj as the second and third largest shareholders, holding 12% and 10%, of the shares outstanding, respectively.

Additionally, we found that 50% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of QPR Software Oyj

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of QPR Software Oyj. Insiders own €7.0m worth of shares in the €28m company. When analysing a company, looking at ownership may seem a logical place to start. However, there are many other factors to consider, such as the risks within the company itself. For example, we’ve discovered 2 warning signs for QPR Software Oyj (of which 1 is major) which any shareholder or potential investor should be aware of.

General Public Ownership

With a 21% ownership, the general public have some degree of sway over QPR1V. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 37%, of the company’s shares. 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.

Public Company Ownership

Public companies currently own 10% of QPR1V stock. It’s hard to say for sure, but this suggests they have entwined business interests. This might be a strategic stake, so it’s worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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