Solaria Energía y Medio Ambiente, S.A.'s (BME:SLR) largest shareholders are retail investors who were rewarded as market cap surged €52m last week

Key Insights

• The considerable ownership by retail investors in Solaria Energía y Medio Ambiente indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 7 shareholders
• Institutional ownership in Solaria Energía y Medio Ambiente is 24%

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To get a sense of who is truly in control of Solaria Energía y Medio Ambiente, S.A. (BME:SLR), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 38% to be precise, is retail investors. 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, retail investors collectively scored the highest last week as the company hit €868m market cap following a 6.4% gain in the stock.

Let's delve deeper into each type of owner of Solaria Energía y Medio Ambiente, beginning with the chart below.

See 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 implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Solaria Energía y Medio Ambiente's historic earnings and revenue below, but keep in mind there's always more to the story.

Solaria Energía y Medio Ambiente is not owned by hedge funds. Our data shows that DTL Corporación, S.L. is the largest shareholder with 35% of shares outstanding. With 3.2% and 3.1% of the shares outstanding respectively, Grantham Mayo Van Otterloo & Co. LLC and Amundi S.A. are the second and third largest shareholders. Furthermore, CEO Jose Diaz-Tejeiro Larranaga is the owner of 1.2% of the company's shares.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Solaria Energía y Medio Ambiente

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Shareholders would probably be interested to learn that insiders own shares in Solaria Energía y Medio Ambiente, S.A.. It has a market capitalization of just €868m, and insiders have €18m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 38% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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. 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.

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 3 warning signs for Solaria Energía y Medio Ambiente you should be aware of, and 1 of them is significant.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.