Insiders are the top stockholders in Gubra A/S (CPH:GUBRA), and the recent 7.2% drop might have disappointed them

Key Insights

• Gubra's significant insider ownership suggests inherent interests in company's expansion
• A total of 2 investors have a majority stake in the company with 61% ownership
• Institutions own 17% of Gubra

Every investor in Gubra A/S (CPH:GUBRA) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 65% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders as a group endured the highest losses after market cap fell by kr.848m.

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

See our latest analysis for Gubra

What Does The Institutional Ownership Tell Us About Gubra?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Gubra already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Gubra's earnings history below. Of course, the future is what really matters.

Gubra is not owned by hedge funds. Our data shows that Niels Vrang is the largest shareholder with 31% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 31% and 5.9%, of the shares outstanding, respectively. Jacob Jelsing, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Henrik Blou directly holds 2.8% of the total shares outstanding.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Gubra

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

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 own more than half of Gubra A/S. This gives them effective control of the company. That means insiders have a very meaningful kr.7.1b stake in this kr.11b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 18% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Gubra better, we need to consider many other factors. Be aware that Gubra is showing 2 warning signs in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.