Stock Analysis

Institutions along with retail investors who hold considerable shares inAktia Pankki Oyj (HEL:AKTIA) come under pressure; lose 8.2% of holdings value

HLSE:AKTIA
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Key Insights

  • Significant control over Aktia Pankki Oyj by retail investors implies that the general public has more power to influence management and governance-related decisions
  • The top 13 shareholders own 50% of the company
  • Insiders have sold recently

A look at the shareholders of Aktia Pankki Oyj (HEL:AKTIA) can tell us which group is most powerful. With 40% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 8.2% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 36% stock also took a hit.

Let's delve deeper into each type of owner of Aktia Pankki Oyj, beginning with the chart below.

See our latest analysis for Aktia Pankki Oyj

ownership-breakdown
HLSE:AKTIA Ownership Breakdown February 11th 2024

What Does The Institutional Ownership Tell Us About Aktia Pankki Oyj?

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.

As you can see, institutional investors have a fair amount of stake in Aktia Pankki Oyj. 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 Aktia Pankki Oyj's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
HLSE:AKTIA Earnings and Revenue Growth February 11th 2024

Aktia Pankki Oyj is not owned by hedge funds. Our data shows that RG Partners OY is the largest shareholder with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.3% and 8.2% of the stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Aktia Pankki 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.

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.

We can see that insiders own shares in Aktia Pankki Oyj. In their own names, insiders own €56m worth of stock in the €648m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 40% 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.

Private Company Ownership

It seems that Private Companies own 12%, of the Aktia Pankki Oyj stock. 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

We can see that public companies hold 3.4% of the Aktia Pankki Oyj shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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 Aktia Pankki Oyj is showing 1 warning sign in our investment analysis , you should know about...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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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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.