Svenska Cellulosa Aktiebolaget SCA (publ) (STO:SCA B) is a favorite amongst institutional investors who own 55%

Key Insights

• Significantly high institutional ownership implies Svenska Cellulosa Aktiebolaget's stock price is sensitive to their trading actions
• The top 12 shareholders own 50% of the company
• Recent purchases by insiders

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If you want to know who really controls Svenska Cellulosa Aktiebolaget SCA (publ) (STO:SCA B), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's delve deeper into each type of owner of Svenska Cellulosa Aktiebolaget, beginning with the chart below.

See our latest analysis for Svenska Cellulosa Aktiebolaget

What Does The Institutional Ownership Tell Us About Svenska Cellulosa Aktiebolaget?

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.

We can see that Svenska Cellulosa Aktiebolaget 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 Svenska Cellulosa Aktiebolaget, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Svenska Cellulosa Aktiebolaget. Our data shows that AB Industrivärden (publ) is the largest shareholder with 11% of shares outstanding. AMF Fonder AB is the second largest shareholder owning 9.5% of common stock, and Norges Bank Investment Management holds about 7.2% of the company stock.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Svenska Cellulosa Aktiebolaget

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. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of Svenska Cellulosa Aktiebolaget SCA (publ) in their own names. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own kr48m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 37% 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 Svenska Cellulosa Aktiebolaget better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Svenska Cellulosa Aktiebolaget .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.