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A look at the shareholders of Malmbergs Elektriska AB (publ) (STO:MEAB B) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of kr510m, Malmbergs Elektriska is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about MEAB B.

Check out our latest analysis for Malmbergs Elektriska

What Does The Institutional Ownership Tell Us About Malmbergs Elektriska?

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.

Malmbergs Elektriska already has institutions on the share registry. Indeed, they own 23% of the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Malmbergs Elektriska, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Malmbergs Elektriska. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Malmbergs Elektriska

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Malmbergs Elektriska AB (publ) insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It appears that the board holds about kr654k worth of stock. This compares to a market capitalization of kr510m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.