Institutions own 44% of Compagnie Générale des Établissements Michelin Société en commandite par actions (EPA:ML) shares but retail investors control 50% of the company

Key Insights

• The considerable ownership by retail investors in Compagnie Générale des Établissements Michelin Société en commandite par actions indicates that they collectively have a greater say in management and business strategy
• 38% of the business is held by the top 25 shareholders
• Institutions own 44% of Compagnie Générale des Établissements Michelin Société en commandite par actions

A look at the shareholders of Compagnie Générale des Établissements Michelin Société en commandite par actions (EPA:ML) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutions, on the other hand, account for 44% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's delve deeper into each type of owner of Compagnie Générale des Établissements Michelin Société en commandite par actions, beginning with the chart below.

View our latest analysis for Compagnie Générale des Établissements Michelin Société en commandite par actions

What Does The Institutional Ownership Tell Us About Compagnie Générale des Établissements Michelin Société en commandite par actions?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Compagnie Générale des Établissements Michelin Société en commandite par actions 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. 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 Compagnie Générale des Établissements Michelin Société en commandite par actions' earnings history below. Of course, the future is what really matters.

Compagnie Générale des Établissements Michelin Société en commandite par actions is not owned by hedge funds. Mage Invest is currently the company's largest shareholder with 4.3% of shares outstanding. With 4.0% and 3.7% of the shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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

Insider Ownership Of Compagnie Générale des Établissements Michelin Société en commandite par actions

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. 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 information suggests that Compagnie Générale des Établissements Michelin Société en commandite par actions insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own €37m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

With a 50% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Compagnie Générale des Établissements Michelin Société en commandite par actions. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 4.3%, 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. For instance, we've identified 2 warning signs for Compagnie Générale des Établissements Michelin Société en commandite par actions that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.