What type of shareholders does Cargotec Corporation (HEL: CGCBV) have?

Every investor in Cargotec Corporation (HEL:CGCBV) should know the most powerful shareholder groups. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. We also tend to see a decline in insider participation in companies that were previously public.

With a market cap of €2.2 billion, Cargotec is a decent size, so it’s probably on the radar of institutional investors. In the graph below, we can see that the institutions are visible on the share register. 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 March 10, 2022

What does institutional ownership tell us about Cargotec?

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.

Cargotec already has institutions registered in the share register. Indeed, they hold a respectable stake in 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 March 10, 2022

We note that hedge funds have no significant investment in Cargotec. Looking at our data, we can see that the major shareholder is Wipunen Varainhallinta Oy with 14% of the outstanding shares. Mariatorp Oy is the second largest shareholder with 12% of ordinary shares and D-Sijoitus Oy owns approximately 11% of company shares.

We dug a little deeper and found that 9 of the major shareholders make up about 52% of the register, implying that along with the large shareholders, there are a few smaller shareholders, thus balancing everyone’s interests somewhat.

Institutional ownership research is a good way to assess and filter a stock’s expected performance. The same can be obtained by studying the sentiments of analysts. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

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.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders hold shares of Cargotec Corporation. This is a big company, so it’s good to see this level of alignment. Insiders hold 59 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, including retail investors, owns 26% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private Company Ownership

We can see that private companies hold 23% of the issued shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Cargotec, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with Cargotec, and understanding them should be part of your investment process.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

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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