- Finland
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- General Merchandise and Department Stores
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- HLSE:TOKMAN
Tokmanni Group Oyj's (HEL:TOKMAN) 15% loss last week hit both individual investors who own 43% as well as institutions
Key Insights
- The considerable ownership by retail investors in Tokmanni Group Oyj indicates that they collectively have a greater say in management and business strategy
- A total of 23 investors have a majority stake in the company with 50% ownership
- 35% of Tokmanni Group Oyj is held by Institutions
If you want to know who really controls Tokmanni Group Oyj (HEL:TOKMAN), then you'll have to look at the makeup of its share registry. With 43% stake, retail investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While institutions, who own 35% shares weren’t spared from last week’s €97m market cap drop, retail investors as a group suffered the maximum losses
Let's take a closer look to see what the different types of shareholders can tell us about Tokmanni Group Oyj.
View our latest analysis for Tokmanni Group Oyj
What Does The Institutional Ownership Tell Us About Tokmanni Group 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.
As you can see, institutional investors have a fair amount of stake in Tokmanni Group Oyj. 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. 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 Tokmanni Group Oyj's historic earnings and revenue below, but keep in mind there's always more to the story.
Tokmanni Group Oyj is not owned by hedge funds. Takoa Invest Oy is currently the company's largest shareholder with 19% of shares outstanding. Varma Mutual Pension Insurance Company, Asset Management Arm is the second largest shareholder owning 4.2% of common stock, and The Vanguard Group, Inc. holds about 3.4% of the company stock.
A closer look at our ownership figures suggests that the top 23 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 Tokmanni Group 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 Tokmanni Group Oyj. In their own names, insiders own €14m worth of stock in the €552m 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
With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Tokmanni Group 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 19% stake in Tokmanni Group Oyj. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Tokmanni Group Oyj (including 1 which is significant) .
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.
Valuation is complex, but we're here to simplify it.
Discover if Tokmanni Group Oyj might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About HLSE:TOKMAN
Tokmanni Group Oyj
Operates as a variety discount retailer in Finland, Sweden, and Denmark.
Undervalued with reasonable growth potential.
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