Institutions profited after Vimian Group AB (publ)'s (STO:VIMIAN) market cap rose kr705m last week but private equity firms profited the most

Simply Wall St · 06/03 11:09

Key Insights

  • Vimian Group's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 2 investors have a majority stake in the company with 57% ownership
  • Recent purchases by insiders

Every investor in Vimian Group AB (publ) (STO:VIMIAN) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 48% to be precise, is private equity firms. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 4.0% increase in the stock price last week, private equity firms profited the most, but institutions who own 23% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Vimian Group.

See our latest analysis for Vimian Group

OM:VIMIAN Ownership Breakdown June 3rd 2024

What Does The Institutional Ownership Tell Us About Vimian Group?

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. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Vimian 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Vimian Group's historic earnings and revenue below, but keep in mind there's always more to the story.

OM:VIMIAN Earnings and Revenue Growth June 3rd 2024

Hedge funds don't have many shares in Vimian Group. Looking at our data, we can see that the largest shareholder is Fidelio Capital with 48% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.9% and 4.2%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Vimian Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own a reasonable proportion of Vimian Group AB (publ). Insiders own kr2.0b worth of shares in the kr18b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 12% stake in Vimian 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 48%, private equity firms could influence the Vimian 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.

Private Company Ownership

Our data indicates that Private Companies hold 6.3%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 instance, we've identified 3 warning signs for Vimian Group (1 is significant) that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.