Stock Analysis

Institutions along with individual investors who hold considerable shares inHusCompagniet A/S (CPH:HUSCO) come under pressure; lose 13% of holdings value

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CPSE:HUSCO
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A look at the shareholders of HusCompagniet A/S (CPH:HUSCO) can tell us which group is most powerful. With 52% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 35% came under pressure after market cap dropped to kr.733m last week,individual investors took the most losses.

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

Our analysis indicates that HUSCO is potentially undervalued!

ownership-breakdown
CPSE:HUSCO Ownership Breakdown December 9th 2022

What Does The Institutional Ownership Tell Us About HusCompagniet?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that HusCompagniet does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see HusCompagniet's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
CPSE:HUSCO Earnings and Revenue Growth December 9th 2022

Hedge funds don't have many shares in HusCompagniet. Looking at our data, we can see that the largest shareholder is Lind Value ApS with 11% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.5% and 7.2% of the stock. In addition, we found that Martin Ravn-Nielsen, the CEO has 1.5% of the shares allocated to their name.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of HusCompagniet

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can see that insiders own shares in HusCompagniet A/S. It has a market capitalization of just kr.733m, and insiders have kr.21m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 52% of HusCompagniet 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.

Private Company Ownership

Our data indicates that Private Companies hold 11%, 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that HusCompagniet is showing 3 warning signs in our investment analysis , and 1 of those is significant...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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