To get an idea of ​​who really controls OEM International AB (publ) (STO:OEM B), it is important to understand the ownership structure of the company. The group with the largest number of shares in the company, around 38% to be precise, is the institutions. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 6.2% in value last week. However, the 8.6% one-year return to shareholders may have helped ease their pain. They should, however, be aware of further losses in the future.

Let’s dive deeper into each OEM International owner type, starting with the table below.

See our latest analysis for OEM International

What does institutional ownership tell us about OEM International?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

OEM International already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be 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. So it’s worth checking out OEM International’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

OEM International is not owned by hedge funds. Our data shows that Orvaus AB is the largest shareholder with 15% of the outstanding shares. With respectively 11% and 9.9% of the outstanding shares, Siv Franzén and Nordea Investment Management AB are the second and third largest shareholders.

Our research also shed light on the fact that approximately 51% of the company is controlled by the top 5 shareholders, suggesting that these owners wield significant influence over the company.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Insider Ownership of OEM International

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 answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

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.

Our information suggests that insiders hold a significant stake in OEM International AB (publ). Insiders have a 1.6 billion kr stake in this 9.7 billion kr venture. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.

General public property

The general public, who are usually individual investors, hold a 30% stake in OEM International. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Private Company Ownership

Our data indicates that private companies own 15% of the company’s shares. 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:

It is always useful to think about the different groups that own shares in a company. But to better understand OEM International, we need to consider many other factors. Take risks for example – OEM International has 3 warning signs (and 1 which is a little obnoxious) that we think you should know about.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

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.

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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.