Is Lagercrantz Group AB (publ) (STO:LAGR B) Popular Amongst Institutions?

By
Simply Wall St
Published
May 10, 2022
OM:LAGR B
Source: Shutterstock

If you want to know who really controls Lagercrantz Group AB (publ) (STO:LAGR B), then you'll have to look at the makeup of its share registry. 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.

Lagercrantz Group isn't enormous, but it's not particularly small either. It has a market capitalization of kr17b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Lagercrantz Group.

View our latest analysis for Lagercrantz Group

ownership-breakdown
OM:LAGR B Ownership Breakdown May 10th 2022

What Does The Institutional Ownership Tell Us About Lagercrantz Group?

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.

Lagercrantz Group 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. 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 Lagercrantz Group's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
OM:LAGR B Earnings and Revenue Growth May 10th 2022

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Lagercrantz Group is not owned by hedge funds. Our data shows that SEB Investment Management AB is the largest shareholder with 15% of shares outstanding. Swedbank Robur Fonder AB is the second largest shareholder owning 13% of common stock, and FMR LLC holds about 8.7% of the company stock. Additionally, the company's CEO Jörgen Wigh directly holds 1.2% of the total shares outstanding.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Lagercrantz Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

We can see that insiders own shares in Lagercrantz Group AB (publ). This is a big company, so it is good to see this level of alignment. Insiders own kr622m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 20% 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 Company Ownership

Our data indicates that Private Companies hold 5.7%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Lagercrantz Group that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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