Stock Analysis

D'Ieteren Group SA's (EBR:DIE) top owners are private companies with 60% stake, while 15% is held by individual investors

ENXTBR:DIE
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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
  • A total of 2 investors have a majority stake in the company with 60% ownership
  • 11% of D'Ieteren Group is held by insiders

Every investor in D'Ieteren Group SA (EBR:DIE) should be aware of the most powerful shareholder groups. With 60% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 15% of the company’s shareholders.

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

Check out our latest analysis for D'Ieteren Group

ownership-breakdown
ENXTBR:DIE Ownership Breakdown February 12th 2024

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

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.

D'Ieteren Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 D'Ieteren Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTBR:DIE Earnings and Revenue Growth February 12th 2024

We note that hedge funds don't have a meaningful investment in D'Ieteren Group. Nayarit Participations is currently the largest shareholder, with 33% of shares outstanding. In comparison, the second and third largest shareholders hold about 26% and 7.1% of the stock. Nicolas D'Ieteren, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

It seems insiders own a significant proportion of D'Ieteren Group SA. It is very interesting to see that insiders have a meaningful €1.0b stake in this €9.6b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 15% stake in the company, and hence can't 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

Our data indicates that Private Companies hold 60%, 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.

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.

Valuation is complex, but we're helping make it simple.

Find out whether D'Ieteren Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.