Stock Analysis

Following a 38% decline over last year, recent gains may please Revenio Group Oyj (HEL:REG1V) institutional owners

HLSE:REG1V
Source: Shutterstock

Key Insights

  • Institutions' substantial holdings in Revenio Group Oyj implies that they have significant influence over the company's share price
  • The top 21 shareholders own 50% of the company
  • Insiders have bought recently

A look at the shareholders of Revenio Group Oyj (HEL:REG1V) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutional investors would appreciate the 17% increase in share prices last week, given their one-year returns have been disappointing at 38%.

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

View our latest analysis for Revenio Group Oyj

ownership-breakdown
HLSE:REG1V Ownership Breakdown November 3rd 2023

What Does The Institutional Ownership Tell Us About Revenio Group Oyj?

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.

Revenio Group 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 Revenio Group Oyj, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
HLSE:REG1V Earnings and Revenue Growth November 3rd 2023

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Revenio Group Oyj is not owned by hedge funds. William Demant Invest A/S is currently the largest shareholder, with 16% of shares outstanding. For context, the second largest shareholder holds about 4.3% of the shares outstanding, followed by an ownership of 4.0% by the third-largest shareholder.

A closer look at our ownership figures suggests that the top 21 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Revenio Group Oyj

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own less than 1% of Revenio Group Oyj. It appears that the board holds about €1.5m worth of stock. This compares to a market capitalization of €620m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Revenio Group Oyj. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Revenio Group Oyj better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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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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.