Could Hamon & Cie (International) SA’s (EBR:HAMO) Investor Composition Influence The Stock Price?

If you want to know who really controls Hamon & Cie (International) SA (EBR:HAMO), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Hamon & Cie (International) is not a large company by global standards. It has a market capitalization of €41m, which means it wouldn’t have the attention of 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 HAMO.

See our latest analysis for Hamon & Cie (International)

ENXTBR:HAMO Ownership Summary December 7th 18
ENXTBR:HAMO Ownership Summary December 7th 18

What Does The Institutional Ownership Tell Us About Hamon & Cie (International)?

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.

Hamon & Cie (International) already has institutions on the share registry. Indeed, they own 18% 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 Hamon & Cie (International), (below). Of course, keep in mind that there are other factors to consider, too.

ENXTBR:HAMO Income Statement Export December 7th 18
ENXTBR:HAMO Income Statement Export December 7th 18

Hedge funds don’t have many shares in Hamon & Cie (International). Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hamon & Cie (International)

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.

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 most recent data indicates that insiders own less than 1% of Hamon & Cie (International) SA. However, it’s possible that insiders might have an indirect interest through a more complex structure. It has a market capitalization of just €41m, and the board has only €2.5k worth of shares in their own names. 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.

General Public Ownership

The general public, with a 17% stake in the company, will not easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 66%, of the HAMO stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Hamon & Cie (International) better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.