Insiders were the key beneficiaries as Groupe CRIT SA's (EPA:CEN) market cap rises to €846m

Key Insights

• Significant insider control over Groupe CRIT implies vested interests in company growth
• The top 2 shareholders own 58% of the company
• Institutions own 22% of Groupe CRIT

If you want to know who really controls Groupe CRIT SA (EPA:CEN), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 67% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 5.8% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Groupe CRIT.

View our latest analysis for Groupe CRIT

What Does The Institutional Ownership Tell Us About Groupe CRIT?

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.

As you can see, institutional investors have a fair amount of stake in Groupe CRIT. 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 Groupe CRIT'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 Groupe CRIT. Our data shows that Yvonne Guedj is the largest shareholder with 49% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.6% and 8.4% of the stock. Karine Guedj, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. Furthermore, CEO Nathalie Jaoui is the owner of 1.5% of the company's shares.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Groupe CRIT

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders own more than half of Groupe CRIT SA. This gives them effective control of the company. Given it has a market cap of €846m, that means they have €571m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Groupe CRIT. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.