After a 33% year-over-year decline, recent gains may please Surgical Science Sweden AB (publ) (STO:SUS) institutional owners
A look at the shareholders in Surgical Science Sweden AB (publ) (STO:SUS) can tell you which group is the most powerful. With 48% of the shares, the institutions have the maximum shares in the company. In other words, the group will gain the most (or lose the most) from its investment in the company.
Institutional investors would probably welcome last week’s 8.9% rise in share prices after a year of 33% losses as a sign that yields are likely to start trending higher.
Let’s take a closer look to see what the different types of shareholders can tell us about Surgical Science Sweden.
Our analysis suggests that SUS is potentially undervalued!
What does institutional ownership tell us about Surgical Science Sweden?
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 larger index. We expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fairly large stake in Surgical Science Sweden. This suggests some credibility among professional investors. But we can’t rely on that fact alone because institutions make bad investments sometimes, just like everyone does. It is not unusual to see a large stock price drop if two large institutional investors try to sell a stock at the same time. So it’s worth checking out the previous track record for Surgical Science Sweden, (below). Keep in mind, of course, that there are also other factors to take into account.
We note that hedge funds do not have a meaningful investment in Surgical Science Sweden. If we look at our data, we can see that the largest shareholder is Jan Bengtsson with 16% of the shares outstanding. Roland Bengtsson is the second largest shareholder with 12% of the ordinary shares and Handelsbanken Kapitalförvaltning owns approximately 7.6% of the company’s shares. In addition, the company’s CEO Gisli Hennermark directly owns 0.7% of the total shares.
We also observed that the 6 largest shareholders account for more than half of the share book, with some smaller shareholders to somewhat balance the interests of the larger ones.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they’re predicting too.
Insider ownership of Surgical Science Sweden
The definition of an insider may differ slightly between different countries, but board members are always counted. Management ultimately answers to the board. However, it is not uncommon for executives to be executive board members, especially if they are founders or CEOs.
Insider ownership is positive when it signals that leadership thinks like the company’s real owners. But high insider ownership can also give enormous power to a small group within the company. This can be negative in some circumstances.
It appears that insiders own a significant share of Surgical Science Sweden AB (publ). Insiders own shares worth SEK 2.8 billion in the SEK 8.1 billion company. We’d say this shows compliance with shareholders, but it’s worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if these insiders have bought or sold.
General public ownership
The public, who are usually individual investors, own 13% of the shares in Surgical Science Sweden. This size of ownership, although significant, may not be enough to change company policy if the decision is not in sync with other major shareholders.
Private business ownership
Our data indicates that private companies own 5.5% of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in any of these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next step:
I think it’s very interesting to look at exactly who owns a business. But to really gain insight, we need to consider other information as well.
I like to dive deeper how a company has performed in the past. You can access this interactive graph of past revenue, earnings and cash flow, for free.
If you prefer to discover what analysts are predicting in terms of future growth, don’t miss this free report on analysts’ forecasts.
NOTE: The figures in this article are calculated using data from the last twelve months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the full year report.
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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 by 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 shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by fundamental data. Note that our analysis may not take into account recent price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.