Stock Analysis

Retail investors are Pihlajalinna Oyj's (HEL:PIHLIS) biggest owners and were hit after market cap dropped €18m

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Key Insights

  • Pihlajalinna Oyj's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 7 investors have a majority stake in the company with 50% ownership
  • 11% of Pihlajalinna Oyj is held by Institutions

Every investor in Pihlajalinna Oyj (HEL:PIHLIS) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, retail investors as a group endured the highest losses last week after market cap fell by €18m.

In the chart below, we zoom in on the different ownership groups of Pihlajalinna Oyj.

Check out our latest analysis for Pihlajalinna Oyj

HLSE:PIHLIS Ownership Breakdown March 25th 2023

What Does The Institutional Ownership Tell Us About Pihlajalinna 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.

Pihlajalinna Oyj already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Pihlajalinna Oyj, (below). Of course, keep in mind that there are other factors to consider, too.

HLSE:PIHLIS Earnings and Revenue Growth March 25th 2023

Pihlajalinna Oyj is not owned by hedge funds. LocalTapiola Group is currently the largest shareholder, with 29% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 3.1% by the third-largest shareholder. Leena Niemisto, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Pihlajalinna 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Pihlajalinna Oyj. As individuals, the insiders collectively own €5.4m worth of the €155m company. 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-- including retail investors -- own 46% 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 40%, of the Pihlajalinna Oyj stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Pihlajalinna Oyj better, we need to consider many other factors. Take risks for example - Pihlajalinna Oyj has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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