Stock Analysis

Private companies invested in Fenix Outdoor International AG (STO:FOI B) copped the brunt of last week's kr1.0b market cap decline

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Key Insights

  • Significant control over Fenix Outdoor International by private companies implies that the general public has more power to influence management and governance-related decisions
  • The top 5 shareholders own 56% of the company
  • Insider ownership in Fenix Outdoor International is 18%

A look at the shareholders of Fenix Outdoor International AG (STO:FOI B) can tell us which group is most powerful. With 33% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, private companies endured the biggest losses as the stock fell by 8.6%.

Let's take a closer look to see what the different types of shareholders can tell us about Fenix Outdoor International.

See our latest analysis for Fenix Outdoor International

OM:FOI B Ownership Breakdown March 17th 2023

What Does The Institutional Ownership Tell Us About Fenix Outdoor International?

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.

Fenix Outdoor International already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Fenix Outdoor International, (below). Of course, keep in mind that there are other factors to consider, too.

OM:FOI B Earnings and Revenue Growth March 17th 2023

Fenix Outdoor International is not owned by hedge funds. The company's largest shareholder is HAK Holding Ltd, with ownership of 15%. Meanwhile, the second and third largest shareholders, hold 14% and 12%, of the shares outstanding, respectively. In addition, we found that Martin Nordin, the CEO has 1.8% of the shares allocated to their name.

Our research also brought to light the fact that roughly 56% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Fenix Outdoor International

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 Fenix Outdoor International AG. It is very interesting to see that insiders have a meaningful kr1.9b stake in this kr11b business. 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

The general public, who are usually individual investors, hold a 30% stake in Fenix Outdoor International. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 33%, 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fenix Outdoor International better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Fenix Outdoor International (of which 1 makes us a bit uncomfortable!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Fenix Outdoor International is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About OM:FOI B

Fenix Outdoor International

Fenix Outdoor International AG, together with its subsidiaries, develops, manufactures, and sells outdoor products primarily in Switzerland, Sweden, other Nordic countries, Germany, Benelux, other European countries, the Americas, and internationally.

Excellent balance sheet and good value.

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