Institutional investors may adopt severe steps after F-Secure Oyj's (HEL:FSECURE) latest 10% drop adds to a year losses

Key Insights

• Institutions' substantial holdings in F-Secure Oyj implies that they have significant influence over the company's share price
• 51% of the business is held by the top 3 shareholders
• Insiders own 37% of F-Secure Oyj

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Every investor in F-Secure Oyj (HEL:FSECURE) should be aware of the most powerful shareholder groups. With 45% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutional investors endured the highest losses after the company's share price fell by 10% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 6.1% might not go down well especially with this category of shareholders. Institutions or "liquidity providers" control large sums of money and therefore, these types of investors usually have a lot of influence over stock price movements. Hence, if weakness in F-Secure Oyj's share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors.

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

View our latest analysis for F-Secure Oyj

What Does The Institutional Ownership Tell Us About F-Secure 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 F-Secure Oyj does have institutional investors; and they hold a good portion of the company's stock. 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 F-Secure Oyj, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in F-Secure Oyj. Our data shows that Risto Siilasmaa is the largest shareholder with 34% of shares outstanding. Skandinaviska Enskilda Banken AB, Private Banking, Investment Banking, and Insurance Arm is the second largest shareholder owning 8.9% of common stock, and Nordea Investment Management, AB holds about 8.2% of the company stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 F-Secure 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of F-Secure Oyj. It has a market capitalization of just €300m, and insiders have €111m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 18% stake in the company, and hence can't easily be ignored. 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 F-Secure Oyj better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with F-Secure Oyj .

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.