Stock Analysis

Following a 5.3% decline over last year, recent gains may please Pricer AB (publ) (STO:PRIC B) institutional owners

OM:PRIC B
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Key Insights

  • Significantly high institutional ownership implies Pricer's stock price is sensitive to their trading actions
  • The top 7 shareholders own 50% of the company
  • Insiders have been buying lately

A look at the shareholders of Pricer AB (publ) (STO:PRIC B) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 50% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Last week's kr354m market cap gain would probably be appreciated by institutional investors, especially after a year of 5.3% losses.

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

Check out our latest analysis for Pricer

ownership-breakdown
OM:PRIC B Ownership Breakdown April 26th 2024

What Does The Institutional Ownership Tell Us About Pricer?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Pricer does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Pricer's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
OM:PRIC B Earnings and Revenue Growth April 26th 2024

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Pricer is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Notz, Stucki Europe S.A. with 10% of shares outstanding. With 10% and 7.5% of the shares outstanding respectively, Goran Sundholm and Quaero Capital SA are the second and third largest shareholders.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Pricer

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our information suggests that insiders maintain a significant holding in Pricer AB (publ). Insiders own kr299m worth of shares in the kr1.9b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Pricer. 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.

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 2 warning signs for Pricer that you should be aware of.

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 Pricer 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.