A look at the shareholders of TREVI – Finanziaria Industriale S.p.A. (BIT:TFI) 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.
TREVI – Finanziaria Industriale is a smaller company with a market capitalization of €25m, 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 bought into the company. Let’s delve deeper into each type of owner, to discover more about TREVI – Finanziaria Industriale.
What Does The Institutional Ownership Tell Us About TREVI – Finanziaria Industriale?
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.
We can see that TREVI – Finanziaria Industriale does have institutional investors; and they hold 19% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at TREVI – Finanziaria Industriale’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in TREVI – Finanziaria Industriale. Our data shows that FSI Investimenti SpA is the largest shareholder with 17% of shares outstanding. The second and third largest shareholders are Polaris Capital Management, LLC and Credit Suisse Asset Management (Switzerland), holding 15% and 2.4%, respectively.
A deeper look at our ownership data shows that the top 14 shareholders collectively hold less than 50% of the register, suggesting a large group of small holders where no one share holder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of TREVI – Finanziaria Industriale
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can see that insiders own shares in TREVI – Finanziaria Industriale S.p.A.. As individuals, the insiders collectively own €478k worth of the €25m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are mostly retail investors, collectively hold 62% of TREVI – Finanziaria Industriale shares. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.
Private Equity Ownership
With a stake of 17%, private equity firms could influence the TFI board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
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. For instance, we’ve identified 5 warning signs for TREVI – Finanziaria Industriale (1 shouldn’t be ignored) that you should be aware of.
If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
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