Surgical Science Sweden AB (publ) (STO:SUS) institutional owners can be happy with recent gains after a 17% loss over the past year
Important insights
- Significantly high institutional ownership means that Surgical Science Sweden’s share prices are sensitive to their trading actions.
- The six largest shareholders own 53% of the company
- Insiders have been buying lately
Each investor in Surgical Science Sweden AB (publ) (STO: SUS) should be aware of the most powerful shareholder groups. The group that has the most shares in the company, more precisely around 45%, are institutions. In other words, the group will gain the most (or lose the most) from its investment in the company.
Institutional investors would likely welcome last week’s 7.2% rise in share prices after a year of 17% losses as a sign that yields are likely to start trending higher.
In the diagram below, we zoom in on the different ownership groups in Surgical Science Sweden.
See our latest analysis for Surgical Science Sweden
What does institutional ownership tell us about Surgical Science Sweden?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. So they generally consider buying larger companies included in the relevant benchmark.
We can see that Surgical Science Sweden has institutional investors; and they hold a large part of the company’s shares. 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.
Hedge funds do not hold many shares in Surgical Science Sweden. Our data shows that Jan Bengtsson is the largest shareholder with 16% of the shares. By comparison, the second and third largest shareholders hold approximately 12% and 7.6% of the shares. Additionally, we found that Gisli Hennermark, CEO has 0.7% of the shares assigned to their name.
We did some more digging and found that 6 of the top shareholders account for roughly 53% of the register, meaning that along with larger shareholders there are some smaller shareholders, balancing out each other’s interests somewhat.
While studying institutional ownership of a company can add value to your research, it’s also good practice to examine analyst recommendations to gain a deeper understanding of a stock’s expected performance. 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. The company’s management answers to the board, and the latter should represent the interests of the shareholders. It is notable that sometimes managers at the highest level sit on the board themselves.
Most people consider insider ownership to be positive because it can indicate that the board is well aligned with other shareholders. However, at certain times too much power is concentrated within this group.
It appears that insiders own a significant share of Surgical Science Sweden AB (publ). Insiders have a share of SEK 3.5 billion in this SEK 8.8 billion business. It’s great to see insiders so invested in the business. It might be worth checking out if these insiders have bought recently.
General public ownership
The public – including private investors – owns 12% of the shares in the company, and therefore cannot be easily ignored. While this group can’t necessarily strike out, it can certainly have a real influence on how the company is run.
Private business ownership
Our data indicates that private companies own 4.3% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it is difficult to draw any broad conclusions, it is worth noting as an area for further research.
Next step:
While it is well worth considering the different groups that own a business, there are other factors that are even more important.
I like to dive deeper how a company has performed in the past. You can find historical revenues and results in this detailed graph.
But in the end it is the future, not the past, that will determine how well the owners of this business will do. Therefore, we think it is appropriate to take a look this free report that shows whether analysts predict a brighter future.
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.
Valuation is complex, but we help make it simple.
Find out about Surgical Science Sweden is potentially over- or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and caveats, dividends, insider trading 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 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.