Are Institutions Heavily Invested In Fortinova Fastigheter AB (Publ)'s (STO:FNOVA B) Shares?

By
Simply Wall St
Published
March 15, 2022
OM:FNOVA B
Source: Shutterstock

A look at the shareholders of Fortinova Fastigheter AB (Publ) (STO:FNOVA B) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Fortinova Fastigheter is a smaller company with a market capitalization of kr2.8b, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Fortinova Fastigheter.

Check out our latest analysis for Fortinova Fastigheter

ownership-breakdown
OM:FNOVA B Ownership Breakdown March 15th 2022

What Does The Institutional Ownership Tell Us About Fortinova Fastigheter?

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.

We can see that Fortinova Fastigheter does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Fortinova Fastigheter's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
OM:FNOVA B Earnings and Revenue Growth March 15th 2022

Fortinova Fastigheter is not owned by hedge funds. Our data shows that Ica-Handlarnas Förbund is the largest shareholder with 12% of shares outstanding. Fastighets AB Balder (publ) is the second largest shareholder owning 9.7% of common stock, and A2F Fastigheter AB holds about 9.1% of the company stock.

We did some more digging and found that 8 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Fortinova Fastigheter

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in Fortinova Fastigheter AB (Publ). As individuals, the insiders collectively own kr69m worth of the kr2.8b company. 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, who are usually individual investors, hold a 42% stake in Fortinova Fastigheter. 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 24%, of the Fortinova Fastigheter 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.

Public Company Ownership

We can see that public companies hold 9.7% of the Fortinova Fastigheter shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. For instance, we've identified 2 warning signs for Fortinova Fastigheter (1 doesn't sit too well with us) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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