Private companies in Lotus Bakeries NV (EBR:LOTB) are its biggest bettors, and their bets paid off as stock gained 4.4% last week

By
Simply Wall St
Published
April 14, 2022
ENXTBR:LOTB
Source: Shutterstock

A look at the shareholders of Lotus Bakeries NV (EBR:LOTB) can tell us which group is most powerful. The group holding the most number of shares in the company, around 50% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, private companies benefitted the most after the company's market cap rose by €175m last week.

Let's delve deeper into each type of owner of Lotus Bakeries, beginning with the chart below.

View our latest analysis for Lotus Bakeries

ownership-breakdown
ENXTBR:LOTB Ownership Breakdown April 14th 2022

What Does The Institutional Ownership Tell Us About Lotus Bakeries?

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 Lotus Bakeries. 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 Lotus Bakeries, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ENXTBR:LOTB Earnings and Revenue Growth April 14th 2022

Lotus Bakeries is not owned by hedge funds. Stichting Administratiekantoor van Aandelen Bisinvest en Lotus Bakeries is currently the company's largest shareholder with 50% of shares outstanding. In comparison, the second and third largest shareholders hold about 1.2% and 0.9% of the stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Lotus Bakeries

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 44% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Lotus Bakeries. 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

Our data indicates that Private Companies hold 50%, 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.

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

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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