Private equity firms account for 50% of Industria de Diseño Textil, S.A.'s (BME:ITX) ownership, while individual investors account for 20%

Key Insights

• Significant control over Industria de Diseño Textil by private equity firms implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Pontegadea Inversiones, S.L with a 50% stake
• Institutional ownership in Industria de Diseño Textil is 15%

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Every investor in Industria de Diseño Textil, S.A. (BME:ITX) should be aware of the most powerful shareholder groups. With 50% stake, private equity firms 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.

Meanwhile, individual investors make up 20% of the company’s shareholders.

Let's delve deeper into each type of owner of Industria de Diseño Textil, beginning with the chart below.

View our latest analysis for Industria de Diseño Textil

What Does The Institutional Ownership Tell Us About Industria de Diseño Textil?

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 Industria de Diseño Textil. 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. 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 Industria de Diseño Textil's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Industria de Diseño Textil. The company's largest shareholder is Pontegadea Inversiones, S.L, with ownership of 50%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 9.3% of the shares outstanding, followed by an ownership of 5.1% by the third-largest shareholder.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Industria de Diseño Textil

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 some shares in Industria de Diseño Textil, S.A.. It is a very large company, and board members collectively own €7.6b worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 20% stake in Industria de Diseño Textil. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 50%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 9.3%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Industria de Diseño Textil has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.