Qt Group Oyj’s (HEL:QTCOM) Recent 11% Pullback Adds to Year-on-Year Losses, Institutional Owners Could Take Drastic Action

If you want to know who really controls Qt Group Oyj (HEL:QTCOM), then you’ll have to look at the composition of its share registry. With 52% of the capital, the institutions hold the maximum number of shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

And institutional investors saw the value of their holdings fall by 11% last week. Needless to say, the recent loss on top of a year-long loss for 75% shareholders might not go over well, especially with this category of shareholders. Often referred to as “market makers,” institutions wield significant power in influencing the price dynamics of any stock. Therefore, if the decline continues, institutional investors may be forced to sell Qt Group Oyj, which could hurt individual investors.

Let’s dive deeper into each owner type of Qt Group Oyj, starting with the table below.

Our analysis indicates that QTCOM is potentially undervalued!

HLSE: QTCOM ownership distribution on October 11, 2022

What does institutional ownership tell us about Qt Group Oyj?

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.

Qt Group Oyj already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Qt Group Oyj’s historical revenue and revenue below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth
HLSE: QTCOM Earnings and Revenue Growth October 11, 2022

Investors should note that institutions actually own more than half of the company, so they can collectively wield significant power. Qt Group Oyj is not owned by hedge funds. The main shareholder of the company is SEB Investment Management AB, with a 25% stake. Ingman Group Oy Ab is the second largest shareholder with 21% of common stock, and Citigroup Inc., Banking and Securities Investments owns approximately 4.6% of the company’s stock. Additionally, CEO Juha Varelius owns 1.1% of the company’s shares.

A more detailed study of the shareholder register showed us that 3 of the main shareholders hold a considerable stake in the company, via their 50% stake.

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. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Insider ownership of Qt Group Oyj

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders hold shares in Qt Group Oyj. It has a market capitalization of just 934 million euros and insiders hold 88 million euros worth of shares, in their own name. This shows at least some alignment. You can click here to see if these insiders have been buying or selling.

General public property

The general public, who are usually individual investors, hold an 18% stake in Qt Group Oyj. 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 21% 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:

It is always useful to think about the different groups that own shares in a company. But to better understand Qt Group Oyj, we need to consider many other factors. For example, we found 2 warning signs for Qt Group Oyj which you should be aware of before investing here.

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 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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