Could Flügger group A/S's (CPH:FLUG B) Investor Composition Influence The Stock Price?

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Every investor in Flügger group A/S (CPH:FLUG B) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'

Flügger group is a smaller company with a market capitalization of ø878m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about FLUG B.

View our latest analysis for Flügger group

CPSE:FLUG B Ownership Summary, July 15th 2019
CPSE:FLUG B Ownership Summary, July 15th 2019

What Does The Institutional Ownership Tell Us About Flügger group?

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.

Institutions own less than 5% of Flügger group. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

CPSE:FLUG B Income Statement, July 15th 2019
CPSE:FLUG B Income Statement, July 15th 2019

Hedge funds don't have many shares in Flügger group. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Flügger group

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 insiders own more than half of Flügger group A/S. This gives them effective control of the company. So they have a ø612m stake in this ø878m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.