What You Need To Know About Desenio Group AB (publ)'s (STO:DSNO) Investor Composition

By
Simply Wall St
Published
January 20, 2022
OM:DSNO
Source: Shutterstock

If you want to know who really controls Desenio Group AB (publ) (STO:DSNO), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.

With a market capitalization of kr3.0b, Desenio Group 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. We can zoom in on the different ownership groups, to learn more about Desenio Group.

See our latest analysis for Desenio Group

ownership-breakdown
OM:DSNO Ownership Breakdown January 20th 2022

What Does The Institutional Ownership Tell Us About Desenio Group?

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 Desenio Group 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. 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 Desenio Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
OM:DSNO Earnings and Revenue Growth January 20th 2022

Desenio Group is not owned by hedge funds. The company's largest shareholder is Verdane, with ownership of 26%. Martin Blomqvist is the second largest shareholder owning 13% of common stock, and Alexander Hars holds about 9.7% of the company stock. Alexander Hars, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Furthermore, CEO Fredrik Palm is the owner of 6.7% of the company's shares.

On looking further, we found that 55% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. 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 Desenio Group

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.

It seems insiders own a significant proportion of Desenio Group AB (publ). Insiders own kr877m worth of shares in the kr3.0b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 22% 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 Equity Ownership

With a stake of 26%, private equity firms could influence the Desenio Group board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

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 example, we've discovered 3 warning signs for Desenio Group (1 is a bit unpleasant!) that you should be aware of before investing here.

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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