Institutional owners of Cargotec Corporation (HEL:CGCBV) may be pleased with recent gains after a 10% loss in the past year

Each investor in Cargotec Corporation (HEL: CGCBV) should know the most powerful shareholder groups. With 45% of the capital, the institutions hold the maximum number of shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

Last week’s €146m market capitalization gain would likely be appreciated by institutional investors, especially after a year of 10% losses.

Let’s take a closer look at what different types of shareholders can tell us about Cargotec.

Check out our latest analysis for Cargotec

HLSE: distribution of ownership of CGCBV on November 14, 2022

What does institutional ownership tell us about Cargotec?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We see that Cargotec has institutional investors; and they own a good part of the shares of 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. 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 taking a look at Cargotec’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
HLSE: CGCBV Earnings and Revenue Growth November 14, 2022

We note that hedge funds have no significant investment in Cargotec. Our data shows that Wipunen Varainhallinta Oy is the largest shareholder with 14% of shares outstanding. With respectively 12% and 11% of the outstanding shares, Mariatorp Oy and D-Sijoitus Oy are the second and third largest shareholders.

We dug a little deeper and found that 8 of the major shareholders make up about 51% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thus balancing everyone’s interests somewhat.

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. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider Ownership of Cargotec

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

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.

Shareholders would likely be interested to learn that insiders hold shares of Cargotec Corporation. It’s a pretty big company, so it’s generally a positive to see a potentially meaningful alignment. In this case, they own about 71 million euros worth of shares (at current prices). It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.

General public property

The general public, who are usually individual investors, hold a 29% stake in Cargotec. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Our data indicates that private companies own 23% 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 should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. To this end, you should be aware of the 3 warning signs we spotted with Cargotec .

But finally it’s the future, not the past, which will determine the performance of the owners of this company. That’s why we think it’s advisable to take a look at this free report showing whether analysts are predicting a better future.

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 the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we help make it simple.

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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.

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