Stock Analysis

FM Mattsson Mora Group AB (publ)'s (STO:FMM B) market cap rose kr195m last week; individual investors who hold 32% profited and so did insiders

OM:FMM B
Source: Shutterstock

Key Insights

  • Significant control over FM Mattsson Mora Group by individual investors implies that the general public has more power to influence management and governance-related decisions
  • The top 5 shareholders own 55% of the company
  • Insider ownership in FM Mattsson Mora Group is 27%

If you want to know who really controls FM Mattsson Mora Group AB (publ) (STO:FMM B), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 32% 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 10% price gain, insiders also received a 27% cut.

In the chart below, we zoom in on the different ownership groups of FM Mattsson Mora Group.

See our latest analysis for FM Mattsson Mora Group

ownership-breakdown
OM:FMM B Ownership Breakdown October 17th 2023

What Does The Institutional Ownership Tell Us About FM Mattsson Mora Group?

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.

We can see that FM Mattsson Mora Group 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at FM Mattsson Mora Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
OM:FMM B Earnings and Revenue Growth October 17th 2023

Hedge funds don't have many shares in FM Mattsson Mora Group. Looking at our data, we can see that the largest shareholder is Svolder AB (publ) with 15% of shares outstanding. With 12% and 12% of the shares outstanding respectively, Tibia Konsult Aktiebolag and Lagerstedt & Krantz Ab are the second and third largest shareholders.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of FM Mattsson Mora Group

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

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 FM Mattsson Mora Group AB (publ). Insiders have a kr574m stake in this kr2.1b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 24%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for FM Mattsson Mora Group you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

About OM:FMM B

FM Mattsson

Engages in the development, manufacture, and sale of water taps and related products for bathrooms and kitchens in Sweden, Norway, Denmark, Finland, Benelux, the United Kingdom, Germany, and Italy.

Flawless balance sheet average dividend payer.