Redcare Pharmacy NV (ETR:RDC) surges 3.8%; retail investors who own 40% shares profited along with institutions

Key Insights

• Significant control over Redcare Pharmacy by retail investors implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 12 shareholders
• Insiders have been selling lately

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To get a sense of who is truly in control of Redcare Pharmacy NV (ETR:RDC), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 40% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While retail investors were the group that reaped the most benefits after last week’s 3.8% price gain, institutions also received a 29% cut.

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

View our latest analysis for Redcare Pharmacy

What Does The Institutional Ownership Tell Us About Redcare Pharmacy?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Redcare Pharmacy 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 Redcare Pharmacy's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Redcare Pharmacy. Our data shows that Galenica AG is the largest shareholder with 10% of shares outstanding. Mk Beleggingsmaatschappij Venlo is the second largest shareholder owning 7.3% of common stock, and T. Rowe Price Group, Inc. holds about 4.8% of the company stock.

After doing some more digging, we found that the top 12 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Redcare Pharmacy

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

Our information suggests that insiders maintain a significant holding in Redcare Pharmacy NV. It has a market capitalization of just €1.6b, and insiders have €218m worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Redcare Pharmacy. 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.

Private Company Ownership

Our data indicates that Private Companies hold 7.3%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

We can see that public companies hold 10% of the Redcare Pharmacy shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Redcare Pharmacy better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Redcare Pharmacy you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.