Institutions own 30% of MERLIN Properties SOCIMI, S.A. (BME:MRL) shares but individual investors control 37% of the company

Key Insights

• Significant control over MERLIN Properties SOCIMI by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 12 shareholders own 51% of the company
• Institutional ownership in MERLIN Properties SOCIMI is 30%

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A look at the shareholders of MERLIN Properties SOCIMI, S.A. (BME:MRL) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 37% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, institutions make up 30% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's take a closer look to see what the different types of shareholders can tell us about MERLIN Properties SOCIMI.

Check out our latest analysis for MERLIN Properties SOCIMI

What Does The Institutional Ownership Tell Us About MERLIN Properties SOCIMI?

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.

MERLIN Properties SOCIMI already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of MERLIN Properties SOCIMI, (below). Of course, keep in mind that there are other factors to consider, too.

It would appear that 25% of MERLIN Properties SOCIMI shares are controlled by hedge funds. 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. Our data shows that Santander Asset Management SA SGIIC is the largest shareholder with 25% of shares outstanding. Manuel Lao Hernandez is the second largest shareholder owning 8.2% of common stock, and BlackRock, Inc. holds about 4.7% of the company stock.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 MERLIN Properties SOCIMI

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in MERLIN Properties SOCIMI, S.A.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around €521m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in MERLIN Properties SOCIMI. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand MERLIN Properties SOCIMI better, we need to consider many other factors. For instance, we've identified 3 warning signs for MERLIN Properties SOCIMI (1 is a bit unpleasant) that you should be aware of.

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.