With 46% ownership in CORESTATE Capital Holding S.A. (ETR:CCAP), hedge funds investors have a lot riding on the business

Key Insights

• Significantly high institutional ownership implies CORESTATE Capital Holding's stock price is sensitive to their trading actions
• 56% of the business is held by the top 6 shareholders
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of CORESTATE Capital Holding S.A. (ETR:CCAP) can tell us which group is most powerful. We can see that hedge funds own the lion's share in the company with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And as as result, hedge funds investors reaped the most rewards after the company's stock price gained 24% last week. The one-year return on investment is currently 47% and last week's gain would have been more than welcomed.

Let's delve deeper into each type of owner of CORESTATE Capital Holding, beginning with the chart below.

See our latest analysis for CORESTATE Capital Holding

What Does The Institutional Ownership Tell Us About CORESTATE Capital Holding?

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.

As you can see, institutional investors have a fair amount of stake in CORESTATE Capital Holding. 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 CORESTATE Capital Holding's earnings history below. Of course, the future is what really matters.

It looks like hedge funds own 46% of CORESTATE Capital Holding shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is Pacific Investment Management Company LLC, with ownership of 9.3%. The second and third largest shareholders are Nut Tree Capital Management, LP and Whitefort Capital Management, LP, with an equal amount of shares to their name at 9.3%.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of CORESTATE Capital Holding

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Shareholders would probably be interested to learn that insiders own shares in CORESTATE Capital Holding S.A.. In their own names, insiders own €3.3m worth of stock in the €99m company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 9.3%, of the shares on issue. 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. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for CORESTATE Capital Holding you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.