Retail investors invested in Aros Bostadsutveckling AB (publ) (STO:AROS) copped the brunt of last week's kr199m market cap decline

Key Insights

• The considerable ownership by retail investors in Aros Bostadsutveckling indicates that they collectively have a greater say in management and business strategy
• 48% of the business is held by the top 10 shareholders
• Insiders own 12% of Aros Bostadsutveckling

If you want to know who really controls Aros Bostadsutveckling AB (publ) (STO:AROS), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are retail investors with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors as a group endured the highest losses last week after market cap fell by kr199m.

In the chart below, we zoom in on the different ownership groups of Aros Bostadsutveckling.

Check out our latest analysis for Aros Bostadsutveckling

What Does The Institutional Ownership Tell Us About Aros Bostadsutveckling?

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.

Aros Bostadsutveckling already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Aros Bostadsutveckling's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Aros Bostadsutveckling. Vencom Residential AB is currently the largest shareholder, with 14% of shares outstanding. With 12% and 10% of the shares outstanding respectively, Samir Taha and Forsta AP-fonden are the second and third largest shareholders. Samir Taha, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

Our studies suggest that the top 10 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 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. 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 Aros Bostadsutveckling

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Aros Bostadsutveckling AB (publ). Insiders own kr191m worth of shares in the kr1.6b 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

The general public -- including retail investors -- own 52% of Aros Bostadsutveckling. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 24%, of the Aros Bostadsutveckling stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Aros Bostadsutveckling (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

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.