Stock Analysis

Public companies are Fastighetsbolaget Emilshus AB (publ)'s (STO:EMIL B) biggest owners and were rewarded after market cap rose by kr284m last week

OM:EMIL B
Source: Shutterstock

Key Insights

A look at the shareholders of Fastighetsbolaget Emilshus AB (publ) (STO:EMIL B) can tell us which group is most powerful. The group holding the most number of shares in the company, around 40% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit kr2.9b market cap following a 11% gain in the stock.

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

View our latest analysis for Fastighetsbolaget Emilshus

ownership-breakdown
OM:EMIL B Ownership Breakdown September 25th 2023

What Does The Institutional Ownership Tell Us About Fastighetsbolaget Emilshus?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Fastighetsbolaget Emilshus 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 Fastighetsbolaget Emilshus' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
OM:EMIL B Earnings and Revenue Growth September 25th 2023

Fastighetsbolaget Emilshus is not owned by hedge funds. The company's largest shareholder is AB Sagax (publ), with ownership of 22%. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 3.5% by the third-largest shareholder.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Fastighetsbolaget Emilshus

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.

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.

Shareholders would probably be interested to learn that insiders own shares in Fastighetsbolaget Emilshus AB (publ). It has a market capitalization of just kr2.9b, and insiders have kr29m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 29%, of the Fastighetsbolaget Emilshus stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 40% of the Fastighetsbolaget Emilshus shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fastighetsbolaget Emilshus better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Fastighetsbolaget Emilshus (of which 1 is potentially serious!) you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.