Private equity firms among Pagero Group Ab (Publ)’s (STO:PAGERO) largest stockholders and were hit after last week’s 10% price drop

Private equity firms among Pagero Group Ab (Publ)’s (STO:PAGERO) largest stockholders and were hit after last week’s 10% price drop

Every investor in Pagero Group Ab (Publ) (STO:PAGERO) should be aware of the most powerful shareholder groups. With 47% stake, private equity firms possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private equity firms as a group endured the highest losses last week after market cap fell by kr219m.

Let’s delve deeper into each type of owner of Pagero Group, beginning with the chart below.

See our latest analysis for Pagero Group

ownership-breakdown
OM:PAGERO Ownership Breakdown September 29th 2022

What Does The Institutional Ownership Tell Us About Pagero Group?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Pagero Group does have institutional investors; and they hold a good portion of the company’s stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Pagero Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
OM:PAGERO Earnings and Revenue Growth September 29th 2022

Pagero Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Summa Equity AB with 34% of shares outstanding. Swedbank Robur Fonder AB is the second largest shareholder owning 9.8% of common stock, and Bengt Nilsson holds about 8.6% of the company stock. Bengt Nilsson, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence the company’s decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Pagero Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Pagero Group Ab (Publ). Insiders have a kr314m stake in this kr1.9b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Pagero Group. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 47%, private equity firms could influence the Pagero Group board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we’ve discovered 1 warning sign for Pagero Group that you should be aware of before investing here.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we’re helping make it simple.

Find out whether Pagero Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Source link

Related post

Bitcoin jumps above $17,000, ether surges 8% as cryptocurrency prices today jump

Bitcoin jumps above $17,000, ether surges 8% as cryptocurrency…

Cryptocurrency prices today rose with the world’s largest and most popular digital token Bitcoin’s price today was trading more than 4%…
Why I Use Electrum Bitcoin Wallet – Bitcoin Magazine

Why I Use Electrum Bitcoin Wallet – Bitcoin Magazine

This is an opinion editorial by Arman The Parman, a Bitcoin educator passionate about privacy. Over many years, I have tinkered…
Casa Ruby founder diverted funds to herself, DC attorney general alleges

Casa Ruby founder diverted funds to herself, DC attorney…

Comment on this story Comment The founder of a nonprofit serving D.C.’s LGBT community diverted hundreds of thousands dollars meant for…

Leave a Reply

Your email address will not be published.