Are Institutions Heavily Invested In Eezy Oyj's (HEL:EEZY) Shares?

By
Simply Wall St
Published
May 18, 2021
HLSE:EEZY
Source: Shutterstock

If you want to know who really controls Eezy Oyj (HEL:EEZY), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Eezy Oyj is not a large company by global standards. It has a market capitalization of €147m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Eezy Oyj.

Check out our latest analysis for Eezy Oyj

ownership-breakdown
HLSE:EEZY Ownership Breakdown May 19th 2021

What Does The Institutional Ownership Tell Us About Eezy 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.

We can see that Eezy Oyj does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Eezy Oyj's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
HLSE:EEZY Earnings and Revenue Growth May 19th 2021

We note that hedge funds don't have a meaningful investment in Eezy Oyj. NoHo Partners Oyj is currently the largest shareholder, with 29% of shares outstanding. For context, the second largest shareholder holds about 26% of the shares outstanding, followed by an ownership of 13% by the third-largest shareholder. In addition, we found that Sami Asikainen, the CEO has 1.6% of the shares allocated to their name.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Eezy Oyj

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

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.

Shareholders would probably be interested to learn that insiders own shares in Eezy Oyj. It has a market capitalization of just €147m, and insiders have €4.5m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though I 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 holds a 14% stake in Eezy Oyj. 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 Equity Ownership

With a stake of 39%, private equity firms could influence the Eezy Oyj board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Public Company Ownership

It appears to us that public companies own 29% of Eezy Oyj. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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