Could Bio-Works Technologies AB (publ)'s (STO:BIOWKS) Investor Composition Influence The Stock Price?

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Every investor in Bio-Works Technologies AB (publ) (STO:BIOWKS) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.

Bio-Works Technologies is not a large company by global standards. It has a market capitalization of kr262m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about BIOWKS.

Check out our latest analysis for Bio-Works Technologies

OM:BIOWKS Ownership Summary, September 13th 2019
OM:BIOWKS Ownership Summary, September 13th 2019

What Does The Institutional Ownership Tell Us About Bio-Works Technologies?

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.

Bio-Works Technologies already has institutions on the share registry. Indeed, they own 19% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Bio-Works Technologies's earnings history, below. Of course, the future is what really matters.

OM:BIOWKS Income Statement, September 13th 2019
OM:BIOWKS Income Statement, September 13th 2019

Bio-Works Technologies is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Bio-Works Technologies

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

I can report that insiders do own shares in Bio-Works Technologies AB (publ). In their own names, insiders own kr8.1m worth of stock in the kr262m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.