The big shareholder groups in Raute Oyj (HEL:RAUTE) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Raute Oyj is a smaller company with a market capitalization of US$108m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about RAUTE.

View our latest analysis for Raute Oyj

What Does The Institutional Ownership Tell Us About Raute Oyj?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Raute Oyj does have institutional investors; and they hold 5.7% of the 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 Raute Oyj’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

Hedge funds don’t have many shares in Raute Oyj. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Raute Oyj

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that insiders maintain a significant holding in Raute Oyj. Insiders have a US$45m stake in this US$108m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.