Is Aktiebolaget Fastator (publ)'s (STO:FASTAT) Shareholder Ownership Skewed Towards Insiders?

If you want to know who really controls Aktiebolaget Fastator (publ) (STO:FASTAT), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of kr1.7b, Aktiebolaget Fastator is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Aktiebolaget Fastator.

Check out our latest analysis for Aktiebolaget Fastator

What Does The Institutional Ownership Tell Us About Aktiebolaget Fastator?

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 Aktiebolaget Fastator. 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. 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 Aktiebolaget Fastator, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Aktiebolaget Fastator. Looking at our data, we can see that the largest shareholder is Mats Lundberg with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 28% and 4.1%, of the shares outstanding, respectively. Joachim Kuylenstierna, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Aktiebolaget Fastator

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 that insiders own more than half the Aktiebolaget Fastator (publ) stock. This gives them a lot of power. Given it has a market cap of kr1.7b, that means they have kr1.1b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 20% ownership, the general public have some degree of sway over Aktiebolaget Fastator. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Be aware that Aktiebolaget Fastator is showing 5 warning signs in our investment analysis , and 3 of those are potentially serious...

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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