Could the ownership structure of Midsona AB (publ) (STO:MSON B) tell us anything useful?

If you want to know who actually controls Midsona AB (publ) (STO:MSON B), then you will need to look at the composition of its share register. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet”.

Midsona is not a big company by global standards. It has a market capitalization of 1.8 billion kr, which means it would not get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutional investors have bought the company. Let’s take a closer look at what different types of shareholders can tell us about Midsona.

See our latest analysis for Midsona

OM:MSON B Ownership Breakdown April 9, 2022

What does institutional ownership tell us about Midsona?

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.

As you can see, institutional investors hold a sizeable share of Midsona. 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. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Midsona’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
OM:MSON B Earnings and Revenue Growth April 9, 2022

We note that hedge funds have no significant investment in Midsona. Looking at our data, we can see that the major shareholder is Stena Adactum AB with 31% of the shares outstanding. For context, the second largest shareholder owns approximately 7.0% of the outstanding shares, followed by 5.2% ownership by the third largest shareholder. Additionally, CEO Peter Åsberg owns 0.8% of the company’s shares.

Looking further, we found that 53% of the shares are held by the top 5 shareholders. In other words, these shareholders have a say in the decisions of the company.

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 are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.

Midsona Insider Property

The definition of an insider may differ slightly from country to country, but board members still matter. 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.

Insider ownership is positive when it signals that executives think like the true 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.

We can report that insiders hold shares in Midsona AB (publ). Its market capitalization is only 1.8 billion kr, and insiders hold 103 million kr worth of shares, in their own name. This shows at least some alignment, but we generally like to see larger insider holdings. You can click here to see if these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 19% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private equity ownership

With a 31% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. 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.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Midsona, we need to consider many other factors. For example, we found 4 warning signs for Midsona (1 is significant!) which you should be aware of before investing here.

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 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.

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