Private companies in Solaria Energía y Medio Ambiente, S.A. (BME:SLR) are its biggest bettors, and their bets paid off as stock gained 8.8% last week

Key Insights

• Solaria Energía y Medio Ambiente's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 6 shareholders own 50% of the company
• 28% of Solaria Energía y Medio Ambiente is held by Institutions

Every investor in Solaria Energía y Medio Ambiente, S.A. (BME:SLR) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 36% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies collectively scored the highest last week as the company hit €2.3b market cap following a 8.8% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Solaria Energía y Medio Ambiente.

Check out our latest analysis for Solaria Energía y Medio Ambiente

What Does The Institutional Ownership Tell Us About Solaria Energía y Medio Ambiente?

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 Solaria Energía y Medio Ambiente. 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 Solaria Energía y Medio Ambiente's earnings history below. Of course, the future is what really matters.

Solaria Energía y Medio Ambiente is not owned by hedge funds. The company's largest shareholder is DTL Corporación, S.L., with ownership of 35%. For context, the second largest shareholder holds about 3.3% of the shares outstanding, followed by an ownership of 3.0% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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

Insider Ownership Of Solaria Energía y Medio Ambiente

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.

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 most recent data indicates that insiders own some shares in Solaria Energía y Medio Ambiente, S.A.. This is a big company, so it is good to see this level of alignment. Insiders own €46m 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 34% stake in Solaria Energía y Medio Ambiente. 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

We can see that Private Companies own 36%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Solaria Energía y Medio Ambiente better, we need to consider many other factors. Be aware that Solaria Energía y Medio Ambiente is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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.