While institutions invested in TietoEVRY Oyj (HEL:TIETO) benefited from last week's 3.3% gain, retail investors stood to gain the most

Key Insights

• TietoEVRY Oyj's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 50% of the business is held by the top 24 shareholders
• Institutions own 40% of TietoEVRY Oyj

Every investor in TietoEVRY Oyj (HEL:TIETO) should be aware of the most powerful shareholder groups. With 44% 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.

Following a 3.3% increase in the stock price last week, retail investors profited the most, but institutions who own 40% stock also stood to gain from the increase.

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

View our latest analysis for TietoEVRY Oyj

What Does The Institutional Ownership Tell Us About TietoEVRY 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.

As you can see, institutional investors have a fair amount of stake in TietoEVRY 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 TietoEVRY Oyj's historic earnings and revenue below, but keep in mind there's always more to the story.

It would appear that 5.1% of TietoEVRY Oyj shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. The company's largest shareholder is Solidium Oy, with ownership of 11%. Silchester International Investors LLP is the second largest shareholder owning 10% of common stock, and Incentive AS holds about 5.1% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 24 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of TietoEVRY 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 data suggests that insiders own under 1% of TietoEVRY Oyj in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own €5.3m 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 44% stake in TietoEVRY 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 TietoEVRY Oyj better, we need to consider many other factors. For instance, we've identified 2 warning signs for TietoEVRY Oyj (1 is potentially serious) that you should be aware of.

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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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.