Devyser Diagnostics AB (publ)'s (STO:DVYSR) recent 11% pullback adds to one-year year losses, institutional owners may take drastic measures
- Significantly high institutional ownership implies Devyser Diagnostics' stock price is sensitive to their trading actions
- 56% of the business is held by the top 5 shareholders
- 39% of Devyser Diagnostics is held by insiders
A look at the shareholders of Devyser Diagnostics AB (publ) (STO:DVYSR) can tell us which group is most powerful. With 44% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And so it follows that institutional investors was the group most impacted after the company's market cap fell to kr1.2b last week after a 11% drop in the share price. The recent loss, which adds to a one-year loss of 3.4% for stockholders, may not sit well with this group of investors. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the decline continues, institutional investors may be pressured to sell Devyser Diagnostics which might hurt individual investors.
Let's take a closer look to see what the different types of shareholders can tell us about Devyser Diagnostics.
See our latest analysis for Devyser Diagnostics
What Does The Institutional Ownership Tell Us About Devyser Diagnostics?
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.
Devyser Diagnostics already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Devyser Diagnostics' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Devyser Diagnostics. Our data shows that Mia Arnhult is the largest shareholder with 24% of shares outstanding. The second and third largest shareholders are Swedbank Robur Fonder AB and Swedbank Robur AB, with an equal amount of shares to their name at 8.5%.
On looking further, we found that 56% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Devyser Diagnostics
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. 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.
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.
It seems insiders own a significant proportion of Devyser Diagnostics AB (publ). Insiders own kr474m worth of shares in the kr1.2b company. 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
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Devyser Diagnostics. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
Devyser Diagnostics AB (publ) provides diagnostic kits for DNA testing within hereditary diseases, oncology, and post-transplantation.
High growth potential with adequate balance sheet.