Stock Analysis

Following recent decline, Hoffmann Green Cement Technologies Societe anonyme's (EPA:ALHGR) top shareholder CEO Julien Blanchard sees holdings value drop by 11%

Published
ENXTPA:ALHGR

Key Insights

Every investor in Hoffmann Green Cement Technologies Societe anonyme (EPA:ALHGR) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to €127m last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about Hoffmann Green Cement Technologies Societe anonyme.

View our latest analysis for Hoffmann Green Cement Technologies Societe anonyme

ENXTPA:ALHGR Ownership Breakdown August 7th 2024

What Does The Institutional Ownership Tell Us About Hoffmann Green Cement Technologies Societe 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.

We can see that Hoffmann Green Cement Technologies Societe anonyme 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 Hoffmann Green Cement Technologies Societe anonyme, (below). Of course, keep in mind that there are other factors to consider, too.

ENXTPA:ALHGR Earnings and Revenue Growth August 7th 2024

We note that hedge funds don't have a meaningful investment in Hoffmann Green Cement Technologies Societe anonyme. The company's CEO Julien Blanchard is the largest shareholder with 31% of shares outstanding. With 19% and 5.8% of the shares outstanding respectively, David Hoffmann and Groupe Lapeyre S.A. are the second and third largest shareholders. Interestingly, the second-largest shareholder, David Hoffmann is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.

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 Hoffmann Green Cement Technologies Societe anonyme

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 most recent data indicates that insiders own the majority of Hoffmann Green Cement Technologies Societe anonyme. This means they can collectively make decisions for the company. So they have a €69m stake in this €127m business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 6.0%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hoffmann Green Cement Technologies Societe anonyme better, we need to consider many other factors. For instance, we've identified 1 warning sign for Hoffmann Green Cement Technologies Societe anonyme that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

Valuation is complex, but we're here to simplify it.

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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.