What you need to know about the investor mix of Gränges AB (publ) (STO: GRNG)

A look at the shareholders of Gränges AB (publ) (STO: GRNG) can tell us which group is more powerful. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. We also tend to see a decrease in the number of insiders in companies that were previously state-owned.

With a market cap of 10 billion crowns, Gränges is a decent size, so it’s probably on the radar of institutional investors. Our analysis of company ownership, below, shows that institutional investors bought the company. Let’s dig deeper into each type of owner, to find out more about Gränges.

See our latest analysis for Gränges

Distribution of OM property: GRNG November 28, 2021

What does institutional ownership tell us about Gränges?

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 businesses to have some institutions listed, especially if they are growing.

As you can see, institutional investors have a large share of Gränges. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see Gränges’ historical income and income below, but keep in mind that there is always more to tell.

profit and revenue growth
OM: GRNG Profits and Revenue Growth November 28, 2021

Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. We find that the hedge funds do not have a significant investment in Gränges. AP Fonden 4 is currently the largest shareholder of the company with 9.3% of the shares outstanding. With 6.5% and 5.0% of shares in circulation respectively, AFA Försäkring, Asset Management Arm and Handelsbanken Asset Management are the second and third shareholders.

After digging a little deeper, we found that the top 13 own a combined 51% stake in the business, suggesting that no shareholder has significant control over the business.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.

Gränges insider property

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in certain circumstances.

Our most recent data indicates that insiders own less than 1% of Gränges AB (publ). Keep in mind that this is a large company and insiders own shares worth 20 million kroner. The absolute value can be more important than the proportional part. It’s good to see board members owning stocks, but it might be worth checking out if those insiders have bought.

General public property

The general public, including retail investors, own 29% of the company’s capital and therefore cannot be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Public enterprise ownership

It appears to us that public companies hold 3.1% of Gränges. It may be a strategic interest and the two companies may have related business interests. It could be that they defused. This exploitation probably deserves to be deepened.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Concrete example: we have spotted 2 warning signs for Gränges you need to be aware of it, and one of them is a bit of a concern.

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

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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