Following a 42% decline over last year, recent gains may please Bactiguard Holding AB (publ) (STO:BACTI B) institutional owners

Key Insights

• Given the large stake in the stock by institutions, Bactiguard Holding's stock price might be vulnerable to their trading decisions
• The top 4 shareholders own 57% of the company
• Insider ownership in Bactiguard Holding is 10%

Every investor in Bactiguard Holding AB (publ) (STO:BACTI B) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would probably welcome last week's 12% increase in share prices after a year of 42% losses as a sign that returns are likely to begin trending higher.

In the chart below, we zoom in on the different ownership groups of Bactiguard Holding.

See our latest analysis for Bactiguard Holding

What Does The Institutional Ownership Tell Us About Bactiguard Holding?

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.

As you can see, institutional investors have a fair amount of stake in Bactiguard Holding. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Bactiguard Holding, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Bactiguard Holding. Looking at our data, we can see that the largest shareholder is Bactiguard B.V. with 20% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 10% by the third-largest shareholder. Jan Stahlberg, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Our research also brought to light the fact that roughly 57% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Bactiguard Holding

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own a reasonable proportion of Bactiguard Holding AB (publ). Insiders own kr222m worth of shares in the kr2.1b company. 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, who are usually individual investors, hold a 12% stake in Bactiguard Holding. 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 37%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 1 warning sign for Bactiguard Holding that you should be aware of before investing here.

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.