All investors in Peab AB (publ) (STO: PEAB B) should be aware of the strongest group of shareholders. We can see that the institution owns most of the company with his 32% ownership. In other words, the group faces the greatest upside potential (or downside risk).
Institutional investors were therefore the group most affected after the company’s market capitalization fell to Tk 1.8 billion last week after the share price fell by 3.5%. Needless to say, the recent loss, which adds even more to his 41% year-over-year loss for shareholders, may not fare well, especially for this category of shareholder. Institutions, often referred to as “market makers,” wield great power in influencing the price dynamics of any stock. As a result, if the decline continues, institutional investors will be pressured to sell his Peab, which could hurt retail investors.
Let’s take a closer look at each type of Peab owner, starting with the diagram below.
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What does institutional ownership tell us about Peab?
Institutional investors typically compare their returns to those of commonly followed indices. As such, they typically look to acquire large companies included in the relevant benchmark index.
As you can see, institutional investors have a sizeable stake in Peab. 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. As such, it’s worth taking a look at Peab’s historical earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Note that hedge funds have made no meaningful investments in Peab. According to our data, Ekhaga Utveckling AB is the largest shareholder with his 21% of outstanding shares. For context, the second largest shareholder owns approximately 14% of the outstanding shares, and the third largest shareholder owns 6.1% of him.
Further investigation reveals that over half of the company’s stock is owned by the top six shareholders. This suggests that the interests of large shareholders are to some extent balanced by minor shareholders.
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. There’s a little bit of analyst coverage on stocks, but not much. So there is room for more coverage.
Insider Ownership of Peeve
While the precise definition of an insider can be subjective, we believe that most directors are insiders. The company’s management runs the business, but the CEO answers the board even though he is a member of the board.
Most people view insider ownership positively because it can indicate that the board works well with other shareholders. However, in some cases, this group may be overly privileged.
Our latest data shows that insiders own a reasonable percentage of Peab AB (publ). With a market capitalization of just her 1.8 billion kronor, insiders own 2.6 billion kroner worth of shares in her name. It’s very important. Most people are happy that the board is investing with them. We invite you to visit this free chart showing recent insider deals.
The general public, usually individual investors, own 19% of Peab’s shares. Ownership of this magnitude may not be enough to move policy decisions in their favor, but they can still collectively influence company policy.
Private equity ownership
With a 6.1% ownership interest, 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 invest in public companies very often. After some time, they may consider selling the capital and relocating it elsewhere.
Private Company Ownership
We can see that the private company owns 22% of the outstanding shares. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into the owners of these private companies. An insider or other party may have an interest in the stock of a public company through another private company.
It’s well worth considering the different groups that own companies, but there are other factors that are even more important.Consider risk as an example – Peab three warning signs (and two slightly uncomfortable) I think you should know.
But in the end it’s the future, not the past will determine how well the owner of this business will do. Therefore, we encourage you to check out this free report that shows if analysts are predicting a brighter future.
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 …