Stock Analysis

Individual investors invested in Rockwool A/S (CPH:ROCK B) copped the brunt of last week's kr.2.8b market cap decline

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CPSE:ROCK B
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A look at the shareholders of Rockwool A/S (CPH:ROCK B) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, individual investors endured the biggest losses as the stock fell by 10%.

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

However if you'd rather see where the opportunities and risks are within ROCK B's industry, you can check out our analysis on the XX Building industry.

ownership-breakdown
CPSE:ROCK B Ownership Breakdown September 24th 2022

What Does The Institutional Ownership Tell Us About Rockwool?

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 have a fair amount of stake in Rockwool. 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 Rockwool's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
CPSE:ROCK B Earnings and Revenue Growth September 24th 2022

Rockwool is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is The Rockwool Foundation, Endowment Arm with 23% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.0% and 4.0%, of the shares outstanding, respectively.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Rockwool

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in Rockwool A/S. The insiders have a meaningful stake worth kr.998m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 53% of Rockwool shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Rockwool better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Rockwool .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Rockwool is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About CPSE:ROCK B

Rockwool

Rockwool A/S manufactures and sells stone wool insulations in Western Europe, Eastern Europe, North America, Asia, and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation1
Future Growth2
Past Performance2
Financial Health6
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet second-rate dividend payer.