Private companies are Casino, Guichard-Perrachon S.A.'s (EPA:CO) biggest owners and were hit after market cap dropped €91m

Key Insights

• Significant control over Casino Guichard-Perrachon by private companies implies that the general public has more power to influence management and governance-related decisions
• France Retail Holdings S.À R.L. owns 53% of the company
• Institutions own 13% of Casino Guichard-Perrachon

To get a sense of who is truly in control of Casino, Guichard-Perrachon S.A. (EPA:CO), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 16% decline in share price, private companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Casino Guichard-Perrachon.

See our latest analysis for Casino Guichard-Perrachon

What Does The Institutional Ownership Tell Us About Casino Guichard-Perrachon?

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.

We can see that Casino Guichard-Perrachon does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Casino Guichard-Perrachon, (below). Of course, keep in mind that there are other factors to consider, too.

It looks like hedge funds own 7.2% of Casino Guichard-Perrachon shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. The company's largest shareholder is France Retail Holdings S.À R.L., with ownership of 53%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 11% and 7.2%, of the shares outstanding, respectively.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Casino Guichard-Perrachon

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.

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 most recent data indicates that insiders own less than 1% of Casino, Guichard-Perrachon S.A.. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It has a market capitalization of just €483m, and the board has only €123k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Casino Guichard-Perrachon. 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 53%, 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:

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. To that end, you should be aware of the 5 warning signs we've spotted with Casino Guichard-Perrachon .

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.