Stock Analysis

2CRSI S.A.'s (EPA:AL2SI) CEO Alain Wilmouth is the most upbeat insider, and their holdings increased by 12% last week

ENXTPA:AL2SI
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Key Insights

  • Significant insider control over 2CRSI implies vested interests in company growth
  • The largest shareholder of the company is Alain Wilmouth with a 51% stake
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of 2CRSI S.A. (EPA:AL2SI) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by €12m last week.

Let's delve deeper into each type of owner of 2CRSI, beginning with the chart below.

Check out our latest analysis for 2CRSI

ownership-breakdown
ENXTPA:AL2SI Ownership Breakdown May 24th 2024

What Does The Institutional Ownership Tell Us About 2CRSI?

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 2CRSI does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 2CRSI's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTPA:AL2SI Earnings and Revenue Growth May 24th 2024

We note that hedge funds don't have a meaningful investment in 2CRSI. The company's CEO Alain Wilmouth is the largest shareholder with 51% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. For context, the second largest shareholder holds about 3.8% of the shares outstanding, followed by an ownership of 2.4% by the third-largest 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. 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 2CRSI

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

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.

It seems that insiders own more than half the 2CRSI S.A. stock. This gives them a lot of power. That means they own €61m worth of shares in the €112m company. That's quite meaningful. 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 40% stake in the company, and hence can't easily be ignored. 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.

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. For example, we've discovered 2 warning signs for 2CRSI that you should be aware of before investing here.

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 helping make it simple.

Find out whether 2CRSI is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.