Swedish Logistic Property AB’s (STO:SLP B) share price fell 10% last week; individual investors would not be happy

A look at the shareholders of Swedish Logistic Property AB (STO:SLP B) can tell us which group is more powerful. The group holding the largest number of shares in the company, around 47% to be precise, are made up of individual investors. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

As a result, individual investors as a group suffered the highest losses last week after the market cap fell by 554 million kr.

In the table below we zoom in on the different ownership groups of Swedish Logistic Property.

Check out our latest analysis for Swedish logistics property

OM: SLP B Distribution of ownership June 25, 2022

What does institutional ownership tell us about Swedish logistics ownership?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors hold a sizeable share of Swedish logistics ownership. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Swedish logistics ownership (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
OM: SLP B Earnings and Revenue Growth June 25, 2022

We note that hedge funds have no significant investment in Swedish logistics property. Our data shows that Nordnet Pensionsförsäkring Ab, Asset Management Arm is the largest shareholder with 9.9% of shares outstanding. With respectively 9.7% and 8.7% of the outstanding shares, Peter Strand and Erik Selin Fastigheter AB are the second and third shareholders. Peter Strand, who is the second largest shareholder, also holds the title of managing director.

We dug a little deeper and found that 6 of the major shareholders make up about 50% of the register, implying that along with the large shareholders there are a few smaller shareholders, thus balancing everyone’s interests somewhat.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There is some analyst coverage of the stock, but it could still become better known over time.

Insider ownership of a Swedish logistics property

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Shareholders would probably be interested to learn that insiders hold shares in Swedish Logistic Property AB. It has a market cap of just 4.8 billion kr, and insiders have shares worth 471 million kr, in their own name. It’s good to see insider investing, but it might be worth checking to see if those insiders have been buying.

General public property

With a 47% stake, the general public, consisting mainly of individual investors, has some influence over Swedish logistics ownership. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.

Private equity ownership

With an 8.7% stake, private equity firms could influence the Swedish Logistic Property Board. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.

Private Company Ownership

It seems that private companies own 22% of the Swedish logistics property stock. It might be worth exploring this further. 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 steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Be aware that the Swedish logistics property displays 5 warning signs in our investment analysis and 2 of them are a little unpleasant…

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, 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 annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Karen J. Nelson