Cereno Scientific AB (publ) (STO:CRNO B) surges 15%; individual investors who own 60% shares profited along with institutions

Key Insights

• The considerable ownership by individual investors in Cereno Scientific indicates that they collectively have a greater say in management and business strategy
• A total of 19 investors have a majority stake in the company with 40% ownership
• Recent purchases by insiders

Every investor in Cereno Scientific AB (publ) (STO:CRNO B) should be aware of the most powerful shareholder groups. With 60% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 15% increase in the stock price last week, individual investors profited the most, but institutions who own 28% stock also stood to gain from the increase.

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

See our latest analysis for Cereno Scientific

What Does The Institutional Ownership Tell Us About Cereno Scientific?

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 Cereno Scientific. 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. 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 Cereno Scientific's historic earnings and revenue below, but keep in mind there's always more to the story.

Cereno Scientific is not owned by hedge funds. The company's largest shareholder is Avanza Fonder AB, with ownership of 20%. For context, the second largest shareholder holds about 5.6% of the shares outstanding, followed by an ownership of 1.8% by the third-largest shareholder.

Our studies suggest that the top 19 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Cereno Scientific

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.

It seems insiders own a significant proportion of Cereno Scientific AB (publ). Insiders have a kr199m stake in this kr1.6b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 60% of Cereno Scientific. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Cereno Scientific is showing 4 warning signs in our investment analysis , and 3 of those are significant...

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.