Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros (BME:LDA) surges 7.4%; private companies who own 30% shares profited along with institutions

Key Insights

• Significant control over Línea Directa Aseguradora Compañía de Seguros y Reaseguros by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 6 shareholders own 55% of the company
• 29% of Línea Directa Aseguradora Compañía de Seguros y Reaseguros is held by Institutions

Every investor in Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros (BME:LDA) should be aware of the most powerful shareholder groups. With 30% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While private companies were the group that reaped the most benefits after last week’s 7.4% price gain, institutions also received a 29% cut.

Let's take a closer look to see what the different types of shareholders can tell us about Línea Directa Aseguradora Compañía de Seguros y Reaseguros.

View our latest analysis for Línea Directa Aseguradora Compañía de Seguros y Reaseguros

What Does The Institutional Ownership Tell Us About Línea Directa Aseguradora Compañía de Seguros y Reaseguros?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Línea Directa Aseguradora Compañía de Seguros y Reaseguros does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Línea Directa Aseguradora Compañía de Seguros y Reaseguros' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Línea Directa Aseguradora Compañía de Seguros y Reaseguros. Looking at our data, we can see that the largest shareholder is Cartival S.A. with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 5.3% of the stock.

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 studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Línea Directa Aseguradora Compañía de Seguros y Reaseguros

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.

We note our data does not show any board members 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 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Línea Directa Aseguradora Compañía de Seguros y Reaseguros. 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 30%, 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.

Public Company Ownership

We can see that public companies hold 14% of the Línea Directa Aseguradora Compañía de Seguros y Reaseguros shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 Línea Directa Aseguradora Compañía de Seguros y Reaseguros is showing 1 warning sign in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.