Private equity firms in Forsee Power Société anonyme (EPA:FORSE) are its biggest bettors, and their bets paid off as stock gained 11% last week

Key Insights

• Significant control over Forsee Power Société anonyme by private equity firms implies that the general public has more power to influence management and governance-related decisions
• A total of 4 investors have a majority stake in the company with 56% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Forsee Power Société anonyme (EPA:FORSE), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private equity firms with 29% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private equity firms were the biggest beneficiaries of last week’s 11% gain.

In the chart below, we zoom in on the different ownership groups of Forsee Power Société anonyme.

Check out our latest analysis for Forsee Power Société anonyme

What Does The Institutional Ownership Tell Us About Forsee Power Société anonyme?

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.

Forsee Power Société anonyme already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Forsee Power Société anonyme's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Forsee Power Société anonyme. The company's largest shareholder is Eurazeo Investment Manager, with ownership of 21%. Mitsui & Co., Ltd. is the second largest shareholder owning 20% of common stock, and Bpifrance Participations SA holds about 7.7% of the company stock. Additionally, the company's CEO Christophe Gurtner directly holds 2.7% of the total shares outstanding.

On looking further, we found that 56% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Forsee Power Société anonyme

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

We can report that insiders do own shares in Forsee Power Société anonyme. In their own names, insiders own €5.7m worth of stock in the €209m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in Forsee Power Société anonyme. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 29% stake in Forsee Power Société anonyme. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 4.5%, of the Forsee Power Société anonyme stock. 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.

Public Company Ownership

Public companies currently own 27% of Forsee Power Société anonyme stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Forsee Power Société anonyme has 2 warning signs we think you should be aware of.

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.