Stock Analysis

    What Kind Of Shareholders Hold The Majority In Kungsleden AB (publ)'s (STO:KLED) Shares?

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    Every investor in Kungsleden AB (publ) (STO:KLED) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

    Kungsleden isn't enormous, but it's not particularly small either. It has a market capitalization of kr19b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Kungsleden.

    See our latest analysis for Kungsleden

    ownership-breakdown
    OM:KLED Ownership Breakdown February 1st 2021

    What Does The Institutional Ownership Tell Us About Kungsleden?

    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.

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

    earnings-and-revenue-growth
    OM:KLED Earnings and Revenue Growth February 1st 2021

    Kungsleden is not owned by hedge funds. Our data shows that Husleden Forvaltning AB is the largest shareholder with 11% of shares outstanding. With 6.9% and 5.1% of the shares outstanding respectively, Ilija Batljan Invest AB and BlackRock, Inc. are the second and third largest shareholders.

    Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 13 shareholders, meaning that no single shareholder has a majority interest in the ownership.

    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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

    Insider Ownership Of Kungsleden

    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. 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.

    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 Kungsleden AB (publ). Insiders own kr2.0b worth of shares in the kr19b company. That's quite meaningful. 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 28% ownership, the general public have some degree of sway over Kungsleden. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

    Private Company Ownership

    Our data indicates that Private Companies hold 18%, of the company's shares. 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:

    It's always worth thinking about the different groups who own shares in a company. But to understand Kungsleden better, we need to consider many other factors. Be aware that Kungsleden is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

    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. 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.
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