Stock Analysis

Individual investors account for 53% of Syensqo SA/NV's (EBR:SYENS) ownership, while public companies account for 31%

ENXTBR:SYENS
Source: Shutterstock

Key Insights

  • Significant control over Syensqo by individual investors implies that the general public has more power to influence management and governance-related decisions
  • 46% of the business is held by the top 25 shareholders
  • Institutional ownership in Syensqo is 16%

To get a sense of who is truly in control of Syensqo SA/NV (EBR:SYENS), it is important to understand the ownership structure of the business. With 53% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Public companies, on the other hand, account for 31% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Syensqo.

Check out our latest analysis for Syensqo

ownership-breakdown
ENXTBR:SYENS Ownership Breakdown July 23rd 2024

What Does The Institutional Ownership Tell Us About Syensqo?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Syensqo. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Syensqo's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTBR:SYENS Earnings and Revenue Growth July 23rd 2024

We note that hedge funds don't have a meaningful investment in Syensqo. Looking at our data, we can see that the largest shareholder is Solvac S.A. with 31% of shares outstanding. With 3.0% and 2.6% of the shares outstanding respectively, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders.

A deeper look at our ownership data shows that the top 25 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Syensqo

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 53% stake in Syensqo, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Public Company Ownership

It appears to us that public companies own 31% of Syensqo. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Case in point: We've spotted 2 warning signs for Syensqo you should be aware of.

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.