What Is The Ownership Structure Like For Compagnie Générale des Établissements Michelin Société en commandite par actions (EPA:ML)?

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. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

Compagnie Générale des Établissements Michelin Société en commandite par actions is a pretty big company. It has a market capitalization of €25b. 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 Compagnie Générale des Établissements Michelin Société en commandite par actions.

See 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.

As you can see, institutional investors have a fair amount of stake in Compagnie Générale des Établissements Michelin Société en commandite par actions. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Compagnie Générale des Établissements Michelin Société en commandite par actions, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Compagnie Générale des Établissements Michelin Société en commandite par actions. Aristotle Capital Management, LLC is currently the largest shareholder, with 3.8% of shares outstanding. With 3.8% and 3.3% of the shares outstanding respectively, MAGE INVEST and The Vanguard Group, Inc. are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

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

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that Compagnie Générale des Établissements Michelin Société en commandite par actions insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. 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 €59m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 48% ownership, the general public have some degree of sway over Compagnie Générale des Établissements Michelin Société en commandite par actions. 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

Our data indicates that Private Companies hold 5.3%, of the company's shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. 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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