Stock Analysis

With 57% ownership, Corporación Financiera Alba, S.A. (BME:ALB) insiders have a lot riding on the company's future

BME:ALB
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Key Insights

  • Corporación Financiera Alba's significant insider ownership suggests inherent interests in company's expansion
  • The top 3 shareholders own 51% of the company
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Corporación Financiera Alba, S.A. (BME:ALB) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So it follows, every decision made by insiders of Corporación Financiera Alba regarding the company's future would be crucial to them.

Let's take a closer look to see what the different types of shareholders can tell us about Corporación Financiera Alba.

Check out our latest analysis for Corporación Financiera Alba

ownership-breakdown
BME:ALB Ownership Breakdown September 6th 2024

What Does The Institutional Ownership Tell Us About Corporación Financiera Alba?

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.

Institutions have a very small stake in Corporación Financiera Alba. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth
BME:ALB Earnings and Revenue Growth September 6th 2024

Corporación Financiera Alba is not owned by hedge funds. José March Delgado is currently the company's largest shareholder with 23% of shares outstanding. Banca March, S.A. is the second largest shareholder owning 15% of common stock, and Juan March Delgado holds about 13% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Corporación Financiera Alba

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own the majority of Corporación Financiera Alba, S.A.. This means they can collectively make decisions for the company. That means insiders have a very meaningful €1.7b stake in this €3.0b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in Corporación Financiera Alba. 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

It seems that Private Companies own 24%, of the Corporación Financiera Alba stock. 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. Be aware that Corporación Financiera Alba is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.