Stock Analysis

Retail investors among Solid Försäkringsaktiebolag (publ)'s (STO:SFAB) largest shareholders, saw gain in holdings value after stock jumped 10% last week

Published
OM:SFAB

Key Insights

Every investor in Solid Försäkringsaktiebolag (publ) (STO:SFAB) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, retail investors benefitted the most after the company's market cap rose by kr111m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Solid Försäkringsaktiebolag.

Check out our latest analysis for Solid Försäkringsaktiebolag

OM:SFAB Ownership Breakdown December 28th 2023

What Does The Institutional Ownership Tell Us About Solid Försäkringsaktiebolag?

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 Solid Försäkringsaktiebolag. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Solid Försäkringsaktiebolag, (below). Of course, keep in mind that there are other factors to consider, too.

OM:SFAB Earnings and Revenue Growth December 28th 2023

We note that hedge funds don't have a meaningful investment in Solid Försäkringsaktiebolag. Looking at our data, we can see that the largest shareholder is SIBA Invest AB with 30% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.4% and 5.1%, of the shares outstanding, respectively.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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

Insider Ownership Of Solid Försäkringsaktiebolag

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 data suggests that insiders own under 1% of Solid Försäkringsaktiebolag (publ) in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It seems the board members have no more than kr6.2k worth of shares in the kr1.2b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

Private equity firms hold a 8.4% stake in Solid Försäkringsaktiebolag. 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.

Private Company Ownership

It seems that Private Companies own 32%, of the Solid Försäkringsaktiebolag stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Solid Försäkringsaktiebolag better, we need to consider many other factors. For instance, we've identified 1 warning sign for Solid Försäkringsaktiebolag that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.