What Percentage Of Groupe LDLC société anonyme (EPA:ALLDL) Shares Do Insiders Own?

Every investor in Groupe LDLC société anonyme (EPA:ALLDL) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of €365m, Groupe LDLC société anonyme is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are not really that prevalent on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Groupe LDLC société anonyme.

Check out our latest analysis for Groupe LDLC société anonyme

What Does The Institutional Ownership Tell Us About Groupe LDLC société anonyme?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Less than 5% of Groupe LDLC société anonyme is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Hedge funds don't have many shares in Groupe LDLC société anonyme. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Groupe LDLC société anonyme's case, its Chairman of Management Board, Laurent Villemonte de la Clergerie, is the largest shareholder, holding 20% of shares outstanding. Caroline Villemonte de la Clergerie is the second largest shareholder owning 10% of common stock, and Olivier Villemonte de la Clergerie holds about 10.0% of the company stock. Interestingly, the second-largest shareholder, Caroline Villemonte de la Clergerie is also Member of Management Board, again, pointing towards strong insider ownership amongst the company's top shareholders.

Our studies suggest that the top 16 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Groupe LDLC 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.

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.

It seems insiders own a significant proportion of Groupe LDLC société anonyme. Insiders have a €150m stake in this €365m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 55% of Groupe LDLC société anonyme shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

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. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Groupe LDLC société anonyme (of which 1 is concerning!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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