Stock Analysis

D'Ieteren Group SA (EBR:DIE) stock most popular amongst private companies who own 58%, while individual investors hold 22%

Published
ENXTBR:DIE

Key Insights

  • The considerable ownership by private companies in D'Ieteren Group indicates that they collectively have a greater say in management and business strategy
  • The top 2 shareholders own 58% of the company
  • Institutions own 17% of D'Ieteren Group

If you want to know who really controls D'Ieteren Group SA (EBR:DIE), then you'll have to look at the makeup of its share registry. With 58% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors, on the other hand, account for 22% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of D'Ieteren Group.

View our latest analysis for D'Ieteren Group

ENXTBR:DIE Ownership Breakdown September 1st 2024

What Does The Institutional Ownership Tell Us About D'Ieteren Group?

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.

D'Ieteren Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 D'Ieteren Group, (below). Of course, keep in mind that there are other factors to consider, too.

ENXTBR:DIE Earnings and Revenue Growth September 1st 2024

D'Ieteren Group is not owned by hedge funds. Nayarit Participations is currently the largest shareholder, with 33% of shares outstanding. With 24% and 3.6% of the shares outstanding respectively, Société Anonyme de Participation et de Gestion and Catheline Périer-D'Ieteren are the second and third largest shareholders.

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 58% stake.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of D'Ieteren Group

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

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.

We can see that insiders own shares in D'Ieteren Group SA. It is a very large company, and board members collectively own €417m worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 58%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

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.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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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.