Stock Analysis

Sovereign wealth funds invested in bpost NV/SA (EBR:BPOST) copped the brunt of last week's €47m market cap decline

Published
ENXTBR:BPOST

Key Insights

  • bpost/SA's significant sovereign wealth funds ownership suggests that the key decisions are influenced by shareholders from the larger public
  • Federal Holding and Investment Company owns 51% of the company
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of bpost NV/SA (EBR:BPOST) can tell us which group is most powerful. We can see that sovereign wealth funds own the lion's share in the company with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 8.9% decline in share price, sovereign wealth funds suffered the most losses.

Let's delve deeper into each type of owner of bpost/SA, beginning with the chart below.

Check out our latest analysis for bpost/SA

ENXTBR:BPOST Ownership Breakdown October 18th 2024

What Does The Institutional Ownership Tell Us About bpost/SA?

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.

bpost/SA 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 bpost/SA's earnings history below. Of course, the future is what really matters.

ENXTBR:BPOST Earnings and Revenue Growth October 18th 2024

bpost/SA is not owned by hedge funds. The company's largest shareholder is Federal Holding and Investment Company, with ownership of 51%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 1.9% and 1.8%, of the shares outstanding, respectively.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of bpost/SA

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.

Our data cannot confirm that board members are 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

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over bpost/SA. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand bpost/SA better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for bpost/SA 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.