To understand who truly controls AB Electrolux (publ) (STO:ELUX B), it is important to understand the ownership structure of the business. The group with the largest shareholding in the company, around 50% to be exact, are institutional investors. In other words, the group stands to gain the most if the share price rises (or suffer the most loss if it falls).
Institutional investors will probably welcome the 4.4% gain in the stock last week, a year after a 21% loss, as a sign that returns are likely to turn upward.
Let’s take a closer look at what different types of shareholders can tell us about AB Electrolux.
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What can institutional investors tell us about AB Electrolux?
Because institutional investors typically measure themselves against benchmarks when reporting to their investors, they are often more enthusiastic about a stock when it is included in a major index. Most companies are expected to have several institutions registered, especially if they are growing.
You can see that AB Electrolux has institutional investors. They own a significant portion of the company’s stock. This indicates a certain level of credibility among professional investors. But that fact alone cannot be relied upon. Because institutional investors, like everyone else, sometimes make bad investments. When two large institutional investors try to sell their shares at the same time, it’s not uncommon for the stock price to drop significantly. It is therefore worth taking a look at AB Electrolux’s historical earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
AB Electrolux is not owned by a hedge fund. Investor AB (publ) is currently the company’s largest shareholder with his 19% of outstanding shares. The second and his third largest shareholders are the Societe Generale Group, Banking Investments and Handelsbanken Asset Management, which own an equal stake of 5.4%.
Further research revealed that the top 11 companies together accounted for 51% of company ownership. This suggests that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to measure and filter a stock’s expected performance. The same can be achieved by studying analyst sentiment. Quite a few analysts cover stocks, so it’s very easy to look up forecast growth.
AB Electrolux Insider Ownership
The definition of an insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, or at least board members. Management finally answers to the board. However, it is not uncommon for managers to be members of the board of directors, especially for founders and CEOs.
Insider ownership is positive when management shows that they think like true owners of the company. However, high insider ownership can also give greater power to smaller groups within the company. This can be negative in some situations.
Our latest data shows that insiders own less than 1% of AB Electrolux (publ). Because it is a large company, even a small percentage of profits can align the board and shareholders. In this case, the insider said he owns shares worth ¥61 million. While it’s always good to verify at least some insider ownership, it might be worth checking to see if those insiders are selling.
general public
The general public, including private investors, own 31% of the company’s shares, so they can’t simply ignore it. Ownership of this magnitude is substantial, but may not be sufficient to change company policy if decisions are out of sync with other major shareholders.
Private equity ownership
With 19% ownership, the private equity firm is positioned to play a role in shaping corporate strategy focused on value creation. Private equity can be long-lived, but generally speaking, private equity has a short investment horizon and, as the name suggests, does not often invest in public companies. After some time, they may consider selling the capital and relocating it elsewhere.
Next steps:
It’s always worth thinking about the different groups that own shares in the company. But many other factors need to be considered to better understand AB Electrolux. Consider, for example, the ever-present specter of investment risk. Identified 5 warning signs AB Electrolux (at least three that make us uncomfortable) and understanding them should be part of your investment process.
Finally the future is the most important. You can access this freedom A report on the company’s analyst forecasts.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …
