Stock Analysis

Is NP3 Fastigheter AB (publ) (STO:NP3) Popular Amongst Institutions?

OM:NP3
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Every investor in NP3 Fastigheter AB (publ) (STO:NP3) 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. Companies that have been privatized tend to have low insider ownership.

NP3 Fastigheter isn't enormous, but it's not particularly small either. It has a market capitalization of kr7.2b, 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. Let's delve deeper into each type of owner, to discover more about NP3 Fastigheter.

Check out our latest analysis for NP3 Fastigheter

ownership-breakdown
OM:NP3 Ownership Breakdown March 9th 2021

What Does The Institutional Ownership Tell Us About NP3 Fastigheter?

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.

We can see that NP3 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. 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 NP3 Fastigheter, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
OM:NP3 Earnings and Revenue Growth March 9th 2021

Hedge funds don't have many shares in NP3 Fastigheter. Poularde AB is currently the largest shareholder, with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 21% and 7.2%, of the shares outstanding, respectively. Furthermore, CEO Andreas Wahlén is the owner of 0.5% of the company's shares.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of NP3 Fastigheter

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.

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.

I can report that insiders do own shares in NP3 Fastigheter AB (publ). It has a market capitalization of just kr7.2b, and insiders have kr86m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 15% stake in the company, will not easily be ignored. 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

We can see that Private Companies own 30%, of the shares on issue. 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 21% of the NP3 Fastigheter shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand NP3 Fastigheter better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for NP3 Fastigheter you should be aware of, and 2 of them make us uncomfortable.

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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