Stock Analysis

individual investors who own 49% along with institutions invested in Outokumpu Oyj (HEL:OUT1V) saw increase in their holdings value last week

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HLSE:OUT1V
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A look at the shareholders of Outokumpu Oyj (HEL:OUT1V) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 49% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week’s 4.7% price gain, institutions also received a 35% cut.

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

However if you'd rather see where the opportunities and risks are within OUT1V's industry, you can check out our analysis on the XX Metals and Mining industry.

ownership-breakdown
HLSE:OUT1V Ownership Breakdown October 5th 2022

What Does The Institutional Ownership Tell Us About Outokumpu Oyj?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

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

earnings-and-revenue-growth
HLSE:OUT1V Earnings and Revenue Growth October 5th 2022

Outokumpu Oyj is not owned by hedge funds. Solidium Oy is currently the company's largest shareholder with 16% of shares outstanding. With 5.0% and 3.8% of the shares outstanding respectively, Goldman Sachs Group, Investment Banking and Securities Investments and Varma Mutual Pension Insurance Company, Asset Management Arm are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 17 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Outokumpu Oyj

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

Our information suggests that Outokumpu Oyj insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own €16m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 49% stake in Outokumpu Oyj. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 16% stake in Outokumpu Oyj. This suggests they can be influential in key policy decisions. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Outokumpu Oyj better, we need to consider many other factors. For example, we've discovered 2 warning signs for Outokumpu Oyj (1 can't be ignored!) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Outokumpu Oyj is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About HLSE:OUT1V

Outokumpu Oyj

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth0
Past Performance6
Financial Health6
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet with outstanding track record.