Are Institutions Heavily Invested In Corporación Acciona Energías Renovables, S.A.'s (BME:ANE) Shares?

By
Simply Wall St
Published
January 16, 2022
BME:ANE
Source: Shutterstock

Every investor in Corporación Acciona Energías Renovables, S.A. (BME:ANE) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.

Corporación Acciona Energías Renovables is a pretty big company. It has a market capitalization of €9.4b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Corporación Acciona Energías Renovables.

View our latest analysis for Corporación Acciona Energías Renovables

ownership-breakdown
BME:ANE Ownership Breakdown January 16th 2022

What Does The Institutional Ownership Tell Us About Corporación Acciona Energías Renovables?

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.

As you can see, institutional investors have a fair amount of stake in Corporación Acciona Energías Renovables. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Corporación Acciona Energías Renovables' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
BME:ANE Earnings and Revenue Growth January 16th 2022

Hedge funds don't have many shares in Corporación Acciona Energías Renovables. The company's largest shareholder is Acciona, S.A., with ownership of 83%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Schroder Investment Management Limited is the second largest shareholder owning 0.7% of common stock, and BNPP Asset Management Holding holds about 0.6% of the company stock.

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

Insider Ownership Of Corporación Acciona Energías Renovables

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 12% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 83% of the Corporación Acciona Energías Renovables shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. Case in point: We've spotted 1 warning sign for Corporación Acciona Energías Renovables 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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