If you want to know who really controls Asaleo Care Limited (ASX: AHY), you will need to look at the makeup of their share ledger. Insiders often own a large number of younger and smaller companies, while large companies tend to have institutions as shareholders. We also tend to see a decline in insider ownership in companies that were previously public.
With a market capitalization of AU $ 543 million, Asaleo Care is a small cap stock, so it might not be well known to many institutional investors. Our analysis of company ownership, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to find out more about Asaleo Care.
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What does institutional ownership tell us about Asaleo Care?
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. You would expect most businesses to have institutions listed, especially if they are growing.
Asaleo Care already has institutions registered in the share register. Indeed, they have a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They too are sometimes 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 Asaleo Care’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of stake in Asaleo Care. The company’s main shareholder is Essity AB (publ), with a 36% stake. Orbis Investment Management Limited is the second largest shareholder with 18% of the common shares and Marathon Asset Management, LLP owns approximately 7.0% of the shares of the company.
After digging deeper, we found that the top 2 shareholders collectively control more than half of the shares of the company, implying that they have considerable power to influence the decisions of the company.
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 it might be interesting to see what they’re planning as well.
Insider property of Asaleo Care
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member.
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 less than 1% of Asaleo Care Limited. It has a market capitalization of just A $ 543 million and the board only holds A $ 1.6 million in shares in their own name. I generally like to see a more invested board. However, it might be worth checking to see if these insiders have bought.
General public property
With an 18% stake, the general public has some influence on Asaleo Care. While this group may not necessarily get things done, it can certainly have a real influence on the management of the business.
Ownership of the public company
It can be seen that public companies hold 36% of Asaleo Care shares in circulation. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Asaleo Care, there are many other factors that we need to consider. For example, we discovered 1 warning sign for Asaleo Care which you should be aware of before investing here.
But finally it’s the future, not the past, which will determine the performance of the owners of this business. Therefore, we think it’s advisable to take a look at this free report showing if analysts are predicting a better future.
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 in which the balance sheet is dated. This may not be consistent with the figures in the annual reports.
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