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Every investor in Getinge AB (STO: GETI B) must know the most powerful groups of shareholders. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.
Getinge has a market cap of 106b kr so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Getinge.
Check out our latest review for Getinge
What does institutional ownership tell us about Getinge?
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 significant stake in Getinge. This implies that analysts working for these institutions have reviewed the title and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Getinge’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. Getinge is not owned by hedge funds. Carl Bennet is currently the largest shareholder in the company with 20% of the shares outstanding. For context, the second largest shareholder owns around 7.6% of the outstanding shares, followed by a 4.1% stake by the third largest shareholder.
We dug a little deeper and found that 10 of the major shareholders make up around 50% of the ledger, implying that in addition to the major shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat. .
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.
Getinge insider ownership
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 give immense power to a small group within the company. This can be negative in certain circumstances.
Our most recent data indicates that insiders own a reasonable proportion of Getinge AB. It has a market cap of just 106 billion Kroner, and insiders have shares worth 21 billion Kroner in their own name. It is quite important. Most would be happy to see the board invest alongside them. You may want to access this free chart showing recent insider trades.
General public property
The general public, with a 29% stake in the company, will not be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Next steps:
While it is worth considering the different groups that own a business, there are other factors that are even more important.
I like to dive deeper on the performance of a company in the past. You can access this interactive graphic past profits, income and cash flow, free of charge.
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 material. Simply Wall St has no position in any of the stocks mentioned.
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