What You Need To Know About Aktieselskabet Schouw & Co.'s (CPH:SCHO) Investor Composition

By
Simply Wall St
Published
January 19, 2022
CPSE:SCHO
Source: Shutterstock

A look at the shareholders of Aktieselskabet Schouw & Co. (CPH:SCHO) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Aktieselskabet Schouw isn't enormous, but it's not particularly small either. It has a market capitalization of kr.13b, which means it would generally expect to see some institutions on the share registry. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Aktieselskabet Schouw.

Check out our latest analysis for Aktieselskabet Schouw

ownership-breakdown
CPSE:SCHO Ownership Breakdown January 19th 2022

What Does The Institutional Ownership Tell Us About Aktieselskabet Schouw?

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 Aktieselskabet Schouw. 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. 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 Aktieselskabet Schouw's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
CPSE:SCHO Earnings and Revenue Growth January 19th 2022

We note that hedge funds don't have a meaningful investment in Aktieselskabet Schouw. The company's largest shareholder is Givesco A/S, with ownership of 28%. With 15% and 2.5% of the shares outstanding respectively, Svend Hornsylds-Legat and Dimensional Fund Advisors L.P. are the second and third largest shareholders.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Aktieselskabet Schouw

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Aktieselskabet Schouw & Co.. It has a market capitalization of just kr.13b, and insiders have kr.2.3b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Aktieselskabet Schouw. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 28%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

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.

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.

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