If you want to know who really controls TREVI – Finanziaria Industriale S.p.A. (BIT:TFI), then you’ll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of €335m, TREVI – Finanziaria Industriale is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about TREVI – Finanziaria Industriale.
What Does The Institutional Ownership Tell Us About TREVI – Finanziaria Industriale?
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.
We can see that TREVI – Finanziaria Industriale does have institutional investors; and they hold a good portion of the company’s 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 TREVI – Finanziaria Industriale’s historic earnings and revenue below, but keep in mind there’s always more to the story.
TREVI – Finanziaria Industriale is not owned by hedge funds. Trevi Holding A.P.S. is currently the largest shareholder, with 33% of shares outstanding. Banco Popolare Societa Cooperativa SCRL, Asset Management Arm is the second largest shareholder owning 4.6% of common stock, and UniCredit S.p.A., Private and Commercial Banking Arm holds about 4.3% of the company stock.
A deeper look at our ownership data shows that the top 18 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of TREVI – Finanziaria Industriale
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 TREVI – Finanziaria Industriale S.p.A. insiders own under 1% of the company. However, it’s possible that insiders might have an indirect interest through a more complex structure. It has a market capitalization of just €335m, and the board has only €690 worth of shares in their own names. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, mostly retail investors, hold a substantial 55% stake in TREVI – Finanziaria Industriale, suggesting it is a fairly popular stock. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Private Company Ownership
Our data indicates that Private Companies hold 33%, of the company’s shares. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
It’s always worth thinking about the different groups who own shares in a company. But to understand TREVI – Finanziaria Industriale better, we need to consider many other factors. Like risks, for instance. Every company has them, and we’ve spotted 2 warning signs for TREVI – Finanziaria Industriale (of which 1 is a bit concerning!) you should know about.
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. 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.
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