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Public companies account for 73% of Interparfums SA's (EPA:ITP) ownership, while individual investors account for 14%
If you want to know who really controls Interparfums SA (EPA:ITP), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 73% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual investors make up 14% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Interparfums.
View our latest analysis for Interparfums
What Does The Institutional Ownership Tell Us About Interparfums?
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 Interparfums does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Interparfums, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Interparfums. Looking at our data, we can see that the largest shareholder is Inter Parfums, Inc. with 73% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Brown Capital Management, LLC is the second largest shareholder owning 3.8% of common stock, and abrdn plc holds about 1.1% of the company stock.
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. 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 Interparfums
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.
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.
Our information suggests that Interparfums SA insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own €3.2m worth of shares. The absolute value might be more important than the proportional share. 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 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Interparfums. 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.
Public Company Ownership
Public companies currently own 73% of Interparfums stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.
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.
Interparfums SA creates, manufactures, and distributes perfumes through proprietary basis or license agreements with brands in ready-to-wear, fashion, jewelry, and accessories sectors.
Solid track record with excellent balance sheet.